China Likely To Retaliate Against US Tariffs On Electric Vehicles, Says Top Analyst Dan Ives: 'Game Of Thrones Continues To Play Out'

Wedbush analyst Dan Ives is of the opinion that China would retaliate if the U.S. were to increase tariffs on electric vehicle imports from China.

What Happened: “Retaliatory definitely could happen. This Game of Thrones continues to play out,” Ives said in an interview with Bloomberg. As per an exclusive report from The Wall Street Journal, the Biden administration is planning to raise the tariffs on China’s EVs from 25% to around 100%, with an additional 2.5% duty on all imported cars into the U.S.

Low-cost EVs from China entering the U.S. market would pose a significant challenge to EV giant Tesla Inc. TSLA as well as other traditional U.S. automakers who have made substantial investments in EVs, Ives said. However, retaliatory action is a concern, he added.

Why It Matters: The Biden administration’s decision to impose new tariffs on China’s EVs is part of a broader strategy to target strategic sectors. The new tariffs, which are expected to be announced as soon as next week, will reportedly also cover batteries and solar cells. This move is likely to have significant implications for the global EV market and could potentially escalate trade tensions between the U.S. and China.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read More: Tesla's Head Of Product Launches Departs After Feeling EV Giant Took ‘Pound Of Flesh' Amid Mass Firings: ‘It's Hard To See The Long Game'

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo by Khanthachai C on Shutterstock