WASHINGTON, June 4 (Reuters) - U.S. Energy Secretary
Jennifer Granholm said on Tuesday quadrupling import duties on
Chinese electric vehicles to over 100% in August as planned is
crucial to the health of the U.S. auto sector.
"We need to have this industry here. And if we didn't do
that, we would just be ceding the entire territory to China like
we saw happen with solar panels," Granholm said in an interview
Tuesday with Reuters reporters and editors.
China's "plan is very aggressive on industrial policy and we
had done nothing and now we are doing something about it."
Washington is investing hundreds of billions of dollars in
clean energy tax subsidies to develop U.S. EV, solar and other
new industries, and has said China's state-driven excess
production capacity in these sectors threatens the viability of
U.S. companies.
President Joe Biden's administration aimed the tariffs,
which are set to take effect starting Aug. 1, at protecting
American jobs from a feared flood of cheap Chinese imports.
"We want to have a manufacturing backbone. We have to be
tough about it," Granholm said.
She said U.S. automakers "are doing everything they can
to continue to reduce prices," rejecting the suggestion that
keeping lower-priced Chinese EVs out of the U.S. would deter
American automakers from cutting prices.
Asked about
Republican criticism of EVs
, Granholm said it would "political malpractice" for a
future Congress to reverse EV tax credits benefiting workers
building vehicles in Republican-voting states.
"I think it would be hard for a member of Congress to
undo these tax credits that are creating jobs in your district,"
Granholm said. "I think the business community would be very
strongly opposed to that... Any president would be in favor of
fighting back against the industrial policies of China -- and
this is what our fighting back is, what our counterpunch is."
Granholm also said she
expected about 1,000 public EV charging
stations to be operational by the end of the year from a
$7.5 billion federal government program that so far has resulted
in a small number of stations up and running. "These are the
hardest ones to do," Granholm said, saying some do not have
electricity.