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Those Chinese tariffs that have been the talk of the town are officially going into effect in August, California has introduced some controversial new policies that may affect drivers, and VW joins the long list of automakers hitting the brakes on EV production.

Proposed Policies in California

California is pushing forward with two new legislative proposals affecting its state’s drivers — a mileage tax to replace dwindling gas tax revenues and a bill to alert drivers when speeding.

• Mileage Tax Proposal — To counter lost gas tax revenue from increasing EV adoption, California is testing a pilot program to charge drivers per mile , aiming to more fairly distribute road maintenance costs among all vehicle types.
• Speeding Alert System — Another new bill proposes that vehicles be equipped with a system to warn drivers when they exceed the speed limit by more than 10 mph. The system would use GPS to provide visual and audio alerts, with proposed implementation by 2032.
• Current Status — Both bills are still in the early stages of testing and implementation. The mileage tax pilot program is currently underway, while the speeding alert bill narrowly passed its first test in the state senate.

VW Delays its ID.7

Volkswagen announced a delay for its ID.7 electric sedan launch in North America, citing a slowdown in EV interest and market changes.

• Launch Delay — The ID.7 electric sedan’s U.S. and Canadian debut, initially slated for this year, has been postponed. “Until when?,” you may ask. Well, it’s anyone’s guess at this point as they have yet to provide an updated timeline.
• Market Challenge — VW noted that the delays reflect the ongoing challenges in the EV market, including high prices, charging infrastructure challenges, and waning demand.
• Looking Ahead — The German automaker says it isn’t giving up on EVs by any means. It still plans on launching in Q4 the ID. Buzz, their highly anticipated electric Microbus-inspired van.

Chinese Tariffs Go Into Effect August 1st

The U.S. is implementing steep tariff increases on Chinese imports starting August 1st in an effort to protect domestic jobs and industries from cheaper imported Chinese products. The tariffs are set to significantly impact EVs, batteries, and semiconductors, among other goods.

• Tariff Jumps — Import duties on Chinese EVs will quadruple to over 100%, and semiconductor tariffs will double to 50%, along with other dramatic increases on things like medical supplies and machinery.
• Strategic Focus — The tariffs target $18B in imports, particularly focusing on lithium-ion batteries.
• China's Response — China has promised to take necessary measures to protect its own interests, arguing that the tariffs will only raise costs for U.S. companies and consumers.

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