Tesla's Musk opposes new US tariffs on Chinese EVs, reverses previous stance

Tesla Inc. CEO Elon Musk expressed opposition to US tariffs on Chinese electric cars (EVs) on Thursday, reversing his past cautions about the importance of trade barriers. Speaking to tech investors via video link at the Viva Technology conference in Paris, Musk emphasised his support for an open market.

"I was surprised when these tariffs were announced," Musk stated. "Neither Tesla nor I requested these taxes. Things that restrict free commerce or distort the market are not desirable.”

Musk's comments follow US President Joe Biden's recent imposition of new tariffs on a variety of Chinese goods, including EVs, in a bid to boost American industry. The Biden administration has upheld and enhanced various tariffs imposed by previous President Donald Trump, including quadrupling taxes on Chinese EVs to more than 100%. These sanctions now affect $18 billion worth of Chinese imports.

The Tesla CEO's comments contrast sharply with his attitude in January when he warned that if no trade obstacles were implemented, Chinese automakers may outperform global competitors. "If there are no trade barriers established, they will pretty much demolish most other car companies in the world," Musk stated during a post-earnings analyst call at the start of the year.

Musk's most recent pronouncements underscore Tesla's competitive position in China without the need for tariffs or special treatment. "Tesla competes successfully in the Chinese market, which has no tariffs or preferential treatment. I am in favour of no tariffs," he stated at the conference.

This year's annual VivaTech conference in Paris drew top industry leaders and politicians, including former Google CEO Eric Schmidt and former US climate ambassador John Kerry. Linda Yaccarino, CEO of Musk's social media platform X, will participate in a panel discussion on the future of content on Friday.

(With inputs from Reuters)