Stellantis CEO Carlos Tavares criticized the Biden Administration’s new tariffs on Chinese electric vehicle (EV) imports in the US. He believes that the tariffs will lead to increased inflation. Tavares highlighted the drawbacks of protectionism, stating that the negative consequences may not be immediate but will manifest over time.
The White House imposed high tariffs on Chinese EVs, with the possibility of penalties on Chinese EV automakers moving production to Mexico. While the US takes a strong stance against Chinese EVs to protect local companies, Europe is also contemplating the implications of imposing tariffs on Chinese EVs. Concerns include the potential undercutting of local automakers in the region.
In response to this competition, Stellantis has partnered with Chinese automaker Leapmotor. The companies plan to launch an affordable electric hatchback in at least 9 European countries by September 2024, acknowledging and capitalizing on the evolving market dynamics. Overall, Tavares emphasized the need for strategic adaptation to the changing market conditions sparked by Chinese EV offerings.