**Why EVs and Semiconductor Components Are About to Become Costlier**
*By Dwaipayan Roy | Oct 11, 2025, 05:28 PM*

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The Global Trade Research Initiative (GTRI) has issued a warning about rising prices for electric vehicles (EVs), wind turbines, and semiconductor components amid escalating US-China trade tensions. This alert follows US President Donald Trump’s recent announcement of a 100% tariff on Chinese imports, set to take effect from November 1, 2025.

### Trade Implications: Tariffs Surge to 130%

With the new tariff in place, the total tariff rate on Chinese goods is expected to soar to approximately 130%. This marks the most significant escalation in the ongoing US-China trade conflict since the initial tariff war began.

According to the GTRI report, the impact will be swift and palpable, leading to higher costs for EVs, wind turbines, and semiconductor parts. The organization also warned that China may respond by redirecting supplies toward its non-Western partners, further strengthening alternative industrial networks.

### Strategic Negotiations: US Dependence on China

Rare earth minerals, vital for US defense, EV manufacturing, and clean energy sectors, are at the center of this trade conflict. The GTRI report emphasized the strategic importance of these materials and suggested that the US may soon have little choice but to enter new negotiations with Beijing.

While the US has often moved quickly without fully considering economic consequences, China appears more calculated and better prepared to handle the fallout.

Furthermore, the US remains heavily reliant on China for a wide range of products, including electronics, textiles, footwear, white goods, and solar panels. This dependence makes the US particularly vulnerable to retaliatory measures.

### Economic Impact: Potential Backfire of Trump’s Strategy

As tariffs push up prices, controlling inflation and production costs could become increasingly challenging for the US government.

The GTRI report cautioned that President Trump’s tough stance on China risks backfiring by hurting American consumers and undermining the broader economic agenda.

### Trade Advice for India: Navigate Carefully

The report also offered guidance for India, advising the country to negotiate with the US on equal and reciprocal terms to safeguard its strategic autonomy.

Instead of relying on uncertain promises from shifting geopolitical alignments, India must focus on building self-reliance in critical technologies and minerals. This strategy would help insulate the Indian economy from future trade shocks and allow New Delhi to leverage its neutral position to strengthen ties both with Western nations and BRICS economies.

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As global trade dynamics evolve, stakeholders must prepare for the likely rise in costs associated with key technologies, while policymakers seek balanced strategies to mitigate economic risks.
https://www.newsbytesapp.com/news/business/us-china-trade-war-to-spike-ev-wind-turbine-costs-report/story