**Why EVs and Semiconductor Components Are About to Become Costlier**
*By Dwaipayan Roy | Oct 11, 2025*
The Global Trade Research Initiative (GTRI) has issued a warning that the ongoing trade conflict between the United States and China is poised to drive up prices for electric vehicles (EVs), wind turbines, and semiconductor components. This caution comes in the wake of US President Donald Trump’s announcement of a new 100% tariff on Chinese imports, set to take effect on November 1, 2025. The move is a response to China’s recent export controls on rare earth minerals—critical to the US defense, EV, and clean energy sectors.
### Trade Implications: Tariffs to Reach 130%
With the introduction of this new tariff, the total tariff rate on Chinese goods will soar to approximately 130%. This marks the most significant escalation in US-China trade tensions since the initial tariff war began. According to the GTRI report, “The impact will be felt quickly. Prices of EVs, wind turbines, and semiconductor parts are expected to rise.”
Furthermore, the report highlights that China may pivot its supply chains to favor its non-Western partners, thereby strengthening alternative industrial networks outside of Western influence.
### Strategic Negotiations: US Reliance on China
The GTRI report draws attention to the strategic importance of rare earth minerals to US industries. It suggests that Washington may soon have little choice but to engage in fresh negotiations with Beijing. Unlike the often impulsive US approach, China appears more deliberate and better prepared in its trade strategy.
The report underscores America’s heavy dependence on China not only for critical electronics but also for textiles, footwear, white goods, and solar panels. This dependency leaves the US vulnerable to retaliatory measures from China.
### Economic Impact: Potential Backfire of Tariff Strategy
As tariffs push prices higher, President Trump may face challenges in controlling inflation and managing production costs domestically. The GTRI warns that his tough stance on China risks backfiring, potentially harming US consumers and undermining his broader economic agenda.
### Trade Advice: India’s Strategic Approach
The GTRI report also offers guidance for India, urging the country to negotiate with the US carefully and on equal terms to ensure reciprocity while preserving its strategic autonomy. Rather than depending on uncertain US promises, New Delhi is advised to prioritize building self-reliance in critical technologies and minerals.
This strategy could insulate India’s economy from future trade shocks and leverage its neutral position to strengthen relationships with both Western nations and BRICS economies.
—
*As the trade landscape evolves, stakeholders across industries must prepare for the economic ripples these tariffs will create, especially in sectors reliant on global supply chains such as EVs and semiconductors.*
https://www.newsbytesapp.com/news/business/us-china-trade-war-to-spike-ev-wind-turbine-costs-report/story