Last week the United States imposed a 100% tariff on Chinese-made electric vehicles (EVs) imported into their country. The measure was taken to protect US vehicle manufacturers who may be affected by the entry of Chinese EVs as they are sold at lower prices. Elon Musk was today quoted as saying that he is now against the enforcement of these tariffs in a conference in Paris.
Musk's position is completely different from his previous statement that other vehicle manufacturers will be "destroyed" by Chinese EV manufacturers if barriers are not imposed. This is possible because Tesla is not subject to any tariffs for selling vehicles in China because they are assembled in that country. He may be worried that China will retaliate against the actions of the Joe Biden administration by imposing the same tariffs on Tesla.
In addition to EVs, America also imposed 50% tariffs on Chinese semiconductors and solar panels. A 25% tariff is imposed on Chinese iron and aluminum. The introduction of this new tariff will increase the cost of all these materials in America and burden consumers. But this is a step that is seen as necessary to restrain China from overtaking America as the country with the largest economy.