US Import Tariffs Expected to Reshape the Global EV Landscape

KatadataOTO – Import tariffs from the United States (US) are still being discussed. A series of negative impacts are claimed to be felt by many parties.

In fact, the new policy from Donald Trump will also influence the global electric vehicle (EV) map.

"The investment dynamics of various multinational companies in various parts of the world are clearly happening right now," said Yannes Martinus Pasaribu, an automotive expert and academic from ITB (Bandung Institute of Technology) to KatadataOTO some time ago.

Yannes stated that a number of challenges must be faced by electric car industry players around the world due to Donald Trump's geopolitical and geoeconomic policies.

Photo : Daihatsu

He predicts that US import tariffs will cause a slowdown in demand for electric four-wheeled vehicles in various places.

Yannes also gave an example that the end of the collaboration between LG Energy Solution and the Indonesian government could be an impact of the implementation of new rules by Trump.

"LG may be forced to withdraw due to market conditions that could potentially change their investment plan map," continued Yannes.

So the US import tariffs initiated by Donald Trump are truly shaking the automotive industry in Indonesia and other countries.

China's Electric Car Exports Have Slowed Down

As previously reported by KatadataOTO, the implementation of the new US tariffs has caused China's electric car exports to fall by 18 percent.

Then there was a shift in trends in a number of countries. Where consumers are starting to switch to PHEVs (plug-in hybrid electric vehicles) instead of buying electric cars.

"The US approach seriously violates WTO (World Trade Organization) rules and disrupts the trade scheme,” wrote CAAM (China Association of Automobile Manufacturers) in an official statement as quoted from CNEvPost some time ago.

CAAM revealed that US import tariffs will have a major impact on the production and supply chain of the global automotive industry.

Photo : BYD

For your information, China is now facing import tariffs from the United States of a considerable amount, reaching 245 percent.

Meanwhile, Beijing imposes a 125 percent tariff on products from the United States.

If the trade war between China and the United States continues, it is certain that automotive industry players must prepare a number of strategies.

That way, they can survive and continue their business amidst the current uncertain conditions.