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Elon Musk said he was not involved in President Joe Biden’s tariff on Chinese electric cars.
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The White House announced a 100% tariff on Chinese electric vehicle imports on May 14.
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Earlier this year, Musk said the government should consider trade barriers for Chinese automakers.
Elon Musk said he was surprised when President Joe Biden announced a tariff on Chinese electric vehicles.
“Neither Tesla nor I asked for these tariffs,” Tesla’s CEO said Thursday during an interview at the VivaTech conference in Paris.
“Tesla competes quite well in the market in China, with no tariffs and no respectful support. In general, I am in favor of no tariffs,” he added.
On May 14, the White House said it planned to impose a 100% tariff on electric cars introduced by Chinese automakers in an effort to combat “China’s unfair trade practices.”
Tesla has faced headwinds recently, including in China, the world’s largest EV market. According to the China Passenger Car Association, Tesla sales in China fell 18% in April compared to the previous year. Globally, the EV company posted its first quarterly annualized decline since 2020 in the first quarter of 2024.
Tesla is facing increasing competition from Chinese EV companies. In the last quarter of 2023, Chinese automaker BYD temporarily dethroned Tesla as the world’s best seller of electric cars.
Musk’s comments Thursday on China’s tariffs appear to mark a turnaround for the billionaire. As recently as January, Musk said the US should do just that think of trade barriers to prevent Chinese EV companies from taking over the US market, warning that the companies could “demolish” the US market if no action is taken.
In April, Tesla’s CEO said: “Chinese car companies are by far the most competitive.”
“That’s where we face the toughest competitive challenges,” Musk said during a podcast with Nicolai Tangen, CEO of Norges Bank Investment Management. “They make great cars and they work very hard.”
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