Tesla boss Elon Musk expressed his opposition to US tariffs on Chinese electric vehicles (EVs), shortly after President Joe Biden increased tariffs on EVs imported from China.
During a technology conference in Paris via video link, the billionaire stated, “Neither Tesla nor I requested these tariffs.”
This statement contrasts with Musk’s previous warning in January, where he cautioned that Chinese car manufacturers would outcompete rivals from other countries if trade barriers were removed.
The White House recently announced new measures, including a 100% tariff on EVs from China, citing unfair policies and aiming to safeguard US jobs.
“In fact, I was surprised when they were announced. Things that inhibit freedom of exchange or distort the market are not good,” Mr Musk said on Thursday.
“Tesla competes quite well in the market in China with no tariffs and no deferential support. I’m in favour of no tariffs,” he added.
Mr. Biden has upheld several tariffs on China initiated by his predecessor, Donald Trump, while also intensifying trade pressure on Beijing.
Last week, Mr. Biden pledged not to allow China to unfairly dominate the market for electric vehicles and other critical goods, such as batteries, computer chips, and essential medical supplies.
China expressed opposition to the tariff increases and declared its intention to enact retaliatory measures.
This week, China initiated an anti-dumping investigation into imports of a commonly used plastic from the US, EU, Taiwan, and Japan.
The announcement by the Ministry of Commerce to probe imports of polyoxymethylene copolymer, utilized in electronics and automobiles, was interpreted as a signal that China intends to retaliate in its trade disputes with the US and Europe.
Also this week, China signalled it could hit cars with large engines imported from the EU and US with tariffs of as much as 25%.
The China Chamber of Commerce to the EU said it had been told about the potential move by what it called “insiders”.
The European Commission (EC), which oversees the EU’s trade policies, has given itself a 4 July deadline to decide whether to impose measures against imports of Chinese-made EVs.