The U.S. government is poised to announce broader tariffs on a variety of Chinese products, including various 'green' products such as solar panels and batteries, and particularly, a dramatic increase in tariffs on Chinese electric vehicles from 25% to 100%.

Rumors first circulated late Thursday that the tariffs, under the "Section 301 amendment" which had been implemented by the previous administration, would not only be extended but expanded. The Wall Street Journal reported that tariffs on Chinese-made electric cars would quadruple from their previous levels.

Currently, all automobiles manufactured in China are subject to a 25% tariff upon importation to the U.S., in addition to a standard 2.5% duty applied to all cars made abroad, totaling 27.5%. This substantial tariff has effectively barred Chinese cars from the U.S. market, as they are more easily exported to countries with lower tariffs.

However, given the incredible affordability of Chinese electric vehicles, even a 25% tariff could lead to competitive pricing. For this reason, many observers considered it inevitable that Chinese electric vehicles would eventually make their way into the U.S. market.

It appears the Biden administration has also decided that the 25% tariff would not suffice to prevent their penetration and has opted to quadruple it to 100%. This means that Chinese electric vehicles would effectively be sold at double the price they would otherwise have been if imported into the U.S. Although this has not been officially announced and the White House has declined to comment, an announcement regarding the new tariffs is expected on Tuesday.

The imposition of these tariffs has been urged by various sectors in the U.S. (and Europe), as the production of electric vehicles in China has surged in recent years.