U.S. tariffs on EV exports, as per Xpeng executive, deemed as a significant obstacle
Rewritten Article:
In a candid chat during a panel at a recent American Chamber of Commerce event in Hong Kong, an executive at Chinese electric vehicle (EV) maker Xpeng shared his frustrations about exporting to the United States due to hefty tariffs. Yeqing Zheng, the vice-president and general counsel at Xpeng, spoke about the challenges their company faces, along with other Chinese EV manufacturers, in navigating the complex trade landscape between the two nations.
Zheng pointed out that the US tariffs on Chinese goods have placed enormous pressure on Chinese EV manufacturers, making direct exports to the US "impossible." According to Zheng, the sector already faced an "extremely high level" of tariffs even before the current trade war. When calculations are done based on the existing tariff structure, the effective rate for the EV industry currently stands at around 270%.
President Donald Trump has imposed cumulative tariffs of 145% on all Chinese goods, with the figure reaching as high as 245% on some items. To offset the impact of these tariffs, Xpeng is making efforts to expand into other markets, such as establishing assembly operations outside China and licensing technology.
The trade conflict between the US and China has been ongoing for some time, with tariffs being increased and adjusted in various rounds. As of April 2025, the tariff structure stands as follows:
- A 10% "minimum base tariff" on all imported goods.
- An additional 34% tariff, which was recently increased by an extra 50%, bringing the total tariff to 104% for many products.
- A final tariff rate of 145% for many Chinese goods, including electric vehicles, when combining the base and retaliatory measures.
However, it's essential to note that specific tariffs for electric vehicles may be subject to additional considerations under the current trade situation. As of April 17, 2025, threats of a 245% tariff on Chinese imports, including electric vehicles, were made[1][2]. To stay updated on the latest tariff rates and changes, consulting recent official trade documents or updates from trade authorities is advisable.
- The vice-president of Xpeng, Yeqing Zheng, has expressed that the high tariffs on Chinese goods, especially electric vehicles, make it impossible for them to export directly to the United States.
- In an attempt to offset the impact of these tariffs, Xpeng is pursuing strategies such as establishing assembly operations outside China and licensing technology in other markets.
- During a panel discussion at the American Chamber of Commerce event in Hong Kong, Zheng highlighted the extremely high level of tariffs that the EV industry already faced before the current trade war, with the effective rate at around 270%.
- The trade conflict between the US and China has led to a complex trade landscape for Chinese EV manufacturers like Xpeng, as tariffs have been increased and adjusted in several rounds.
- In April 2025, threats were made of a 245% tariff on Chinese imports, including electric vehicles, although specific tariffs for EVs may be subject to additional considerations under the current trade situation.
