Apu Gomez/Getty Images News
Tesla (NASDAQ: Tesla) Chief Executive Elon Musk no longer supports U.S. tariffs on Chinese electric vehicles, a sharp contrast to comments he made earlier this year when he warned Chinese automakers would “destroy” international rivals without trade barriers.
Biden administration last week China quadruples electric vehicle tariffs to 100% to deal with the “risk of overcapacity” and significantly increase tariffs on other Chinese imported products.
“Neither Tesla (TSLA) nor I asked for these tariffs, in fact I was surprised when they were announced,” Musk said during a remote Q&A session at the VivaTech conference in Paris. “Things that inhibit freedom of exchange or distort markets are not good.”
He noted that Tesla (TSLA) competes “pretty well” in the Chinese market, with no tariffs and no differential support. “I’m in favor of no tariffs.”
Musk also said he favors no tax incentives for electric vehicles if tax incentives for oil and natural gas are also eliminated.
The statement about the tariffs contrasts with comments he made on an earnings call in January, when he said Chinese electric vehicles “will pretty much destroy most other car companies in the world” if trade barriers are not erected.
