{"id":51055,"date":"2024-05-15T17:21:30","date_gmt":"2024-05-15T16:21:30","guid":{"rendered":"https:\/\/www.climatechangenews.com\/?p=51055"},"modified":"2024-05-15T17:22:33","modified_gmt":"2024-05-15T16:22:33","slug":"days-after-climate-talks-us-slaps-tariffs-on-chinese-evs-and-solar-panels","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2024\/05\/15\/days-after-climate-talks-us-slaps-tariffs-on-chinese-evs-and-solar-panels\/","title":{"rendered":"Days after climate talks, US slaps tariffs on Chinese EVs and solar panels"},"content":{"rendered":"<p><strong>Five days after seemingly cordial US-China climate talks, US President Joe Biden has announced he will increase US tariffs on Chinese solar panels, electric vehicles (EVs) and batteries to run them.<\/strong><\/p>\n<p>Last Wednesday and Thursday, China&#8217;s new top climate diplomat Liu Zhenmin travelled to Washington DC for two days of talks with his US counterpart John Podesta, also fresh in the job.<\/p>\n<p>They <a href=\"https:\/\/www.state.gov\/readout-on-meeting-of-the-u-s-china-working-group-on-enhancing-climate-action-in-the-2020s\/\" target=\"_blank\" rel=\"noopener\">discussed<\/a> co-operation on climate issues, including plans for both sides to ramp up renewables, and vowed to &#8220;intensify technical and policy exchanges&#8221;.<\/p>\n<p>But the day after, with Liu still in the country, the <a href=\"https:\/\/www.reuters.com\/sustainability\/climate-energy\/us-discussed-overcapacity-chinese-solar-manufacturing-coal-climate-talks-2024-05-10\/#:~:text=WASHINGTON%2C%20May%2010%20(Reuters),Department%20officials%20said%20on%20Friday\" target=\"_blank\" rel=\"noopener\">US State Department briefed<\/a> journalists that Podesta had told Liu that China was producing too many solar panels and lithium-ion EV batteries.<\/p>\n<blockquote><p><a href=\"https:\/\/cleanenergyfrontier.climatechangenews.com\/india-wants-own-solar-industry-break-reliance-china\/\" target=\"_blank\" rel=\"noopener\"><strong>India wants<\/strong> its own solar industry but has to break reliance on China first<\/a><\/p><\/blockquote>\n<p>Then on Tuesday<strong>,<\/strong> the White House increased tariffs on Chinese EVs, lithium-ion batteries and solar panels, accusing the Chinese government of &#8220;unfair, non-market practices&#8221; and &#8220;flooding global markets with artificially low-priced exports&#8221;.<\/p>\n<h3>&#8220;Clear protectionism&#8221;<\/h3>\n<p>In response, the state-owned <a href=\"https:\/\/www.chinadaily.com.cn\/a\/202405\/14\/WS66431573a31082fc043c708e.html#:~:text=Specifically%2C%20the%20tariffs%20on%20EVs,a%20clear%20act%20of%20protectionism.\" target=\"_blank\" rel=\"noopener\">China Daily newspaper <\/a>in an editorial described the tariffs as &#8220;a clear act of protectionism&#8221;.<\/p>\n<p>The head of the China Automobile Association Fu Bingfeng <a href=\"https:\/\/www.chinadaily.com.cn\/a\/202405\/14\/WS66431573a31082fc043c708e.html#:~:text=Specifically%2C%20the%20tariffs%20on%20EVs,a%20clear%20act%20of%20protectionism.\" target=\"_blank\" rel=\"noopener\">agreed<\/a>, adding that &#8220;the new energy industry is jointly created by mankind and can bring common benefits to mankind&#8221;, saying the tariffs were &#8220;very unreasonable&#8221;.<\/p>\n<p>Asia Society analyst Li Shuo told Climate Home that, rather than thinking of over-supply of solar panels as a problem, &#8220;it is the world&#8217;s inability to deploy these products that is the problem&#8221;.<\/p>\n<blockquote><p><a href=\"https:\/\/cleanenergyfrontier.climatechangenews.com\/zimbabwe-lithium-mining-china-ev-battery-supply-chain\/\" target=\"_blank\" rel=\"noopener\"><strong>Lithium boom:<\/strong> Zimbabwe looks to China to secure a place in the EV battery supply chain<\/a><\/p><\/blockquote>\n<p>The tariffs reflect &#8220;the new reality global climate politics needs to deal with&#8221; &#8211; that low-carbon products will not be made in the most cost-efficient way and distributed around the world, he explained. India also has trade barriers against Chinese solar panels, designed to boost its domestic solar manufacturing.<\/p>\n<p>Research from the Center for Strategic and International Studies <a href=\"https:\/\/www.csis.org\/analysis\/reshore-reroute-rebalance-us-strategy-clean-energy-supply-chains\" target=\"_blank\" rel=\"noopener\">has found<\/a> that such trade barriers can, in general, delay the competitiveness of low-carbon technologies against their market rivals &#8211; like solar against gas, or EVs against internal combustion engines.<\/p>\n<h3>Limited effect on solar, batteries bigger<\/h3>\n<p>The US-imposed measures are designed to increase the cost of Chinese goods needed for the energy transition &#8211; and could therefore slow down America&#8217;s shift away from fossil fuels.<\/p>\n<p>But BloombergNEF solar analyst Jenny Chase told Climate Home that the increase in the tariff on solar cells and modules from 25% to 50% would &#8220;have little effect&#8221;.<\/p>\n<p>She noted that tariffs of 25% have been in place &#8220;for ages &#8211; and as a result the US imports almost no cells or modules directly from China, instead importing from Southeast Asia&#8221;.<\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2024\/05\/15\/in-nagorno-karabakh-azerbaijans-net-zero-vision-clashes-with-legacy-of-war\/\" target=\"_blank\" rel=\"noopener\"><strong>In Nagorno-Karabakh,<\/strong> Azerbaijan\u2019s net zero vision clashes with legacy of war<\/a><\/p><\/blockquote>\n<p>The Biden administration is currently weighing whether to impose tariffs on solar imports from four Southeast Asian countries over concerns that China is routing its panels through these nations.<\/p>\n<p>US solar panel manufacturers are lobbying the government in favour of those tariffs, while US solar panel installers are lobbying against them. A decision is needed by June 6, two years on from a <a href=\"https:\/\/www.climatechangenews.com\/2022\/06\/09\/us-solar-installers-breathe-sigh-of-relief-as-biden-eases-protectionism\/\" target=\"_blank\" rel=\"noopener\">pause on tariffs<\/a> affecting the Southeast Asian nations.<\/p>\n<p>Similarly, the US already imports relatively few electric vehicles from China, as it already has Trump-era tariffs on them. The US&#8217;s adoption of electric vehicles is <a href=\"https:\/\/ourworldindata.org\/electric-car-sales\" target=\"_blank\" rel=\"noopener\">far slower<\/a> than in Europe or China.<\/p>\n<p>But US car-makers do import lots of lithium-ion EV batteries for their vehicles despite existing 7.5% tariffs. China produces <a href=\"https:\/\/cleanenergyfrontier.climatechangenews.com\/clean-energy-supply-chains\/\" target=\"_blank\" rel=\"noopener\">about three-quarters<\/a> of all the world&#8217;s EV batteries, with the US producing less than a tenth.<\/p>\n<p><em>(Reporting by Joe Lo; editing by Megan Rowling)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"The measures are designed to increase the cost of Chinese goods needed for the energy transition &#8211; and could therefore slow the US shift away from fossil fuels","protected":false},"author":56,"featured_media":51069,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1847,98],"tags":[83,2060,21,4238,102],"coauthors":[4545],"class_list":["post-51055","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia","category-us","tag-china-policy","tag-electric-vehicles","tag-solar-energy","tag-trade","tag-usa","type-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>After climate talks, US sets tariffs on Chinese EVs and solar panels<\/title>\n<meta name=\"description\" content=\"US president Joe Biden has announced he will increase US tariffs on Chinese solar panels, electric vehicles (EVs) and their batteries.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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