China's Electric Car Exports Slow Down Amid US Import Tariffs

KatadataOTO – Electric car manufacturers from China will face many challenges this year. This is because United States President Donald Trump is implementing reciprocal tariffs or import tariffs high on China.

According to Trump, the decision was made to protect the growth of domestic industries.

With the many import tariffs imposed, exports of Chinese electric cars are said to have dropped by up to 18 percent.

Then there is a shift in trends in several countries. Where consumers are starting to switch to PHEVs (plug-in hybrid electric vehicles) and not EVs (electric vehicles) or pure electric cars.

Photo : Chery

As a result of these various challenges, Chinese manufacturers are predicted to start focusing on other potential countries, such as those in Southeast Asia, including Indonesia.

Considering that in Indonesia, the government provides support in the form of tax incentives for manufacturers that already assemble their vehicles locally or are just planning to build a factory.

Import incentives have been enjoyed by BYD (Build Your Dreams) in Indonesia, as there is already a commitment to build a factory in Subang, West Java.

As of February 2025, the number of Chinese electric car exports to Indonesia reached 5,737 units, an increase of 79 percent from the same period in 2024.

Indonesia is ranked sixth among countries importing electric cars from China throughout 2025. In first place is Belgium with 10,105 units, followed by the United Kingdom with 8,362 units, and then the Philippines with 8,225 units.

In Indonesia itself, the impact of the US import tariffs is said to be felt by the automotive component industry. 

Then it is possible that this will attract many foreign products looking for alternatives to the US. 

China Says Import Tariffs Will Not Have Much Effect

Several Chinese brands will likely build factories in Mexico and produce models that qualify for import tariff exemptions to the US.

Photo : Carnewschina

The import tariffs themselves, according to the association from China, will not have much of an effect. Because the number of exports to the US from China throughout 2024 was 116 thousand, only about 1.81 percent of total exports.

It is undeniable that there will still be an impact felt in the domestic market. However, this depends on how the Chinese government responds, by establishing new regulations to minimize the effects of US import tariffs.

“The US approach seriously violates WTO (World Trade Organization) rules, disrupts trade schemes, and could have a major impact on the production and supply chain of the global automotive industry,” wrote a statement from CAAM (China Association of Automobile Manufacturers) quoted from CNEvPost, Wednesday (09/04).