Stock Market News

China EV stocks sink on reports of US tariffs

2024.05.09 23:46

China EV stocks sink on reports of US tariffs

Investing.com– Shares of major Chinese electric vehicle makers fell on Friday, after multiple reports said that the U.S. was preparing more tariffs against Chinese companies, specifically aimed at EVs and other key sectors.

Li Auto Inc (HK:) (NASDAQ:), NIO Inc (HK:) (NYSE:), BYD (HK:) and Geely Automobile (HK:) fell between 1% and 4% in Hong Kong trade, lagging a 1.5% jump in the index.

Xiaomi (OTC:) Corp (HK:), which recently entered the EV sector with its SU7 model, fell 0.9%, while battery making giant Contemporary Amperex Technology (SZ:) fell 2.2% as the reports said China’s battery industry will also be targeted. 

Reports from Bloomberg and Reuters said U.S. President Joe Biden could announce new tariffs on China as soon as next week, extending certain levies that were imposed by former President Donald Trump. 

But the new tariffs will be far more targeted than the Trump-era levies, and will focus on key strategic sectors such as EVs, batteries, and solar energy equipment. 

Any U.S. tariffs on Chinese EV makers are widely expected to quash their plans for international expansion. But fears of cheap Chinese EVs dominating U.S. and European markets have also been a point of concern for other major automakers.

Tariffs on China’s battery industry could also provide headwinds to U.S. EV makers, given their reliance on China for battery technology. CATL, for instance, has multiple partnerships with Tesla Inc (NASDAQ:) and Ford Motor Company (NYSE:) to supply battery technology for their vehicles.

Any more trade tariffs also threaten retaliatory measures from China, given that relations between the world’s two biggest economies are already frayed.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.

But the actual impact of tariffs on Chinese EV makers remains unclear, given that they still sell most of their cars in the domestic market. Chinese EV demand has remained a key bright spot in an otherwise weak global automobile market.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 103,152.64 2.02%
ethereum
Ethereum (ETH) $ 2,339.06 14.36%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.36 5.56%
bnb
BNB (BNB) $ 636.10 2.82%
solana
Solana (SOL) $ 171.68 7.96%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.205357 8.00%
cardano
Cardano (ADA) $ 0.785412 7.30%
tron
TRON (TRX) $ 0.262783 3.06%
staked-ether
Lido Staked Ether (STETH) $ 2,337.22 14.54%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 103,314.68 2.11%
sui
Sui (SUI) $ 3.92 0.12%
chainlink
Chainlink (LINK) $ 16.05 5.20%
avalanche-2
Avalanche (AVAX) $ 23.37 9.89%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,809.80 14.23%
stellar
Stellar (XLM) $ 0.296461 5.13%
shiba-inu
Shiba Inu (SHIB) $ 0.000015 7.77%
hedera-hashgraph
Hedera (HBAR) $ 0.200966 5.63%
hyperliquid
Hyperliquid (HYPE) $ 24.93 13.80%
bitcoin-cash
Bitcoin Cash (BCH) $ 409.63 1.97%
the-open-network
Toncoin (TON) $ 3.27 2.17%
leo-token
LEO Token (LEO) $ 8.69 1.36%
usds
USDS (USDS) $ 1.00 0.01%
litecoin
Litecoin (LTC) $ 99.26 7.37%
polkadot
Polkadot (DOT) $ 4.84 12.92%
weth
WETH (WETH) $ 2,339.69 14.57%
monero
Monero (XMR) $ 308.61 5.22%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,491.83 14.06%
bitget-token
Bitget Token (BGB) $ 4.47 0.67%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.26%
pepe
Pepe (PEPE) $ 0.000012 21.35%
pi-network
Pi Network (PI) $ 0.724408 15.10%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.09%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 103,102.62 2.05%
whitebit
WhiteBIT Coin (WBT) $ 30.34 1.82%
uniswap
Uniswap (UNI) $ 6.36 15.20%
bittensor
Bittensor (TAO) $ 426.20 2.70%
near
NEAR Protocol (NEAR) $ 2.91 12.15%
dai
Dai (DAI) $ 1.00 0.02%
aptos
Aptos (APT) $ 5.55 6.17%
ondo-finance
Ondo (ONDO) $ 1.02 7.63%
okb
OKB (OKB) $ 53.53 2.11%
aave
Aave (AAVE) $ 209.90 10.22%
susds
sUSDS (SUSDS) $ 1.05 0.01%
ethereum-classic
Ethereum Classic (ETC) $ 19.22 8.62%
crypto-com-chain
Cronos (CRO) $ 0.101203 4.78%
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00 0.00%
internet-computer
Internet Computer (ICP) $ 5.41 8.71%
official-trump
Official Trump (TRUMP) $ 14.05 13.25%