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Elon Musk Now Says He Opposes US Tariffs on Chinese EVs

Reuters05-24

(Reuters) - Tesla founder Elon Musk told tech investors in Paris on Thursday he opposed U.S. tariffs on Chinese electric vehicles (EVs), an about-face from his January warning that trade barriers were needed or China would "demolish most other car companies in the world."

On Thursday, Musk said he did not favour measures that distorted the market.

This month, U.S. President Joe Biden rolled out new tariffs on an array of Chinese imports, including EVs, seeking to support American manufacturing.

The Biden administration has maintained a number of tariffs introduced by former President Donald Trump, while ratcheting up others, including quadrupling EV duties to more than 100%. The White House said the new measures affect $18 billion in imported Chinese goods.

"Neither Tesla nor I asked for these tariffs, in fact I was surprised when they were announced. Things that inhibit freedom of exchange or distort the market are not good," Musk said at the Viva Technology conference in Paris via video link.

“Tesla competes quite well in the market in China with no tariffs and no deferential support. I’m in favour of no tariffs," Musk said.

In January, Musk warned Chinese automakers would "demolish" global competitors without trade barriers.

"If there are no trade barriers established, they will pretty much demolish most other car companies in the world," Musk said in a post-earnings analyst call at the start of the year.

Leading tech executives and political figures such as ex-Google CEO Eric Schmidt and former U.S. climate envoy John Kerry took to the stage this year at the annual VivaTech conference.

Linda Yaccarino, the CEO of Musk-owned social media platform X, is expected to participate in-person on Friday for a panel discussion on the future of content.

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Comment4

  • Guavaxf30
    ·05-24
    Share your opinion about this news…
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  • Guavaxf30
    ·05-24
    Musk cannot be believed. He keeps changing his stand. Whatever suits his need for thr moment. Where are his principles? Where is his scruple?
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  • Max87
    ·05-24
    Lol came after Elon realizes China starts planning tariff & trade barriers of their own.... Starts with industrial plastics & they've down sufficient analysis to know if they'd be able to successfully do it. It's a U-turn from reaction to China's intense competition towards, "I'd rather not lose it". 
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  • OpenMind
    ·05-24
    Well a change of stance because the market of china for Tesla is bigger than any other country alone.  If china ban increase tariffs for US auto markers then Tesla will be hit sales will drop. In china, china EVs will then dominate. 
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