Chinese electric cars were once largely synonymous with small, inexpensive vehicles. But in the past year, local EV makers have started repositioning themselves for the premium market.
The timing of a new 100 per cent duty by the US on imported Chinese EVs is thus unfortunate for those companies, hitting them just as they started going global with their high-end cars.
Not all companies will be affected equally by the tariffs. In the low end, the BYD Seagull electric hatchback, for example, with a price tag of around $9,600 in China, would still be considered price-competitive in most overseas markets even after a 100 per cent tariff. Less so for models like the Zeekr 009, the electric multipurpose vehicle starting at $69,700. Some manufacturers may decide US expansion is not worth the added costs. Others may find workarounds by setting up production facilities in countries like Mexico.