US Imposes Tariffs on Chinese Electric Vehicles, Hindering Waymo's Self-Driving Taxi Plans

US Imposes Tariffs on Chinese Electric Vehicles, Hindering Waymo's Self-Driving Taxi PlansAugust 13, the US government's imposition of temporary tariffs on Chinese electric vehicles poses a new obstacle for Waymo's expansion of its robotaxi fleet. Alphabet-owned Waymo, aiming to roll out new self-driving taxis manufactured by Geely subsidiary Zeekr, faces potential hurdles with these vehicles designed in Sweden and manufactured with involvement from Geely's Volvo

US Imposes Tariffs on Chinese Electric Vehicles, Hindering Waymo's Self-Driving Taxi Plans

August 13, the US government's imposition of temporary tariffs on Chinese electric vehicles poses a new obstacle for Waymo's expansion of its robotaxi fleet. Alphabet-owned Waymo, aiming to roll out new self-driving taxis manufactured by Geely subsidiary Zeekr, faces potential hurdles with these vehicles designed in Sweden and manufactured with involvement from Geely's Volvo. Waymo equips these vehicles with its self-driving hardware and software. Earlier this year, initial batches of these cars arrived in the US, but they could now be impacted by the Biden administration's newly imposed restrictive tariffs.

The US government has proposed raising tariffs on Chinese-made electric vehicles from the current 25% to 100%, a move expected to take effect later this year. Besides this, the US Department of Commerce plans to issue new regulations prohibiting the use of Chinese software in self-driving and connected vehicles operating in the US. These measures could affect a wide range of products, particularly electric vehicles. China is rapidly becoming a dominant force in the global automotive industry's electrification drive, with Chinese-made electric vehicles expected to jump from 6% of total car sales in 2020 to nearly 50% this year.

Waymo currently indicates it's closely monitoring the situation and emphasizes that its self-driving software isn't sourced from China. Earlier this year, the first Zeekr-made self-driving cars made their debut in California. Waymo declines to reveal the number of such vehicles already imported and whether the tariffs will alter the company's eventual deployment plans.

"We are closely monitoring the tariff issue," said Waymo spokesperson Ethan Teich in an email. "We've begun on-road human-driven testing of the sixth generation WaymoDriver on the Zeekr vehicle platform, and there is no news on its public deployment at this time."

Regarding the US Department of Commerce's regulation prohibiting Chinese software in self-driving cars, Teich indicated Waymo would take a wait-and-see approach. "We will consider making comments only once the Department of Commerce's regulation is finalized," he said. "It's worth noting that our self-driving system, the WaymoDriver, is designed and assembled in the US."

Currently, Waymo's fleet primarily comprises Jaguar I-Pace electric crossovers, operating mainly in San Francisco, Los Angeles, and Phoenix, with an upcoming launch in Austin. According to a recent software recall filing, Waymo's fleet includes approximately 670 driverless vehicles.

Zeekr-made vehicles were originally presented as a cost-effective option for Waymo, which has spent billions of dollars over the years. Waymo also hinted at the possibility of new self-driving taxis lacking traditional controls like steering wheels and pedals, further minimizing costs. However, the company requires regulatory approval before deploying fully driverless vehicles onto public roads.

Compared to Waymo's current self-driving vehicles, Zeekr vehicles can accommodate five passengers, potentially aiding Waymo in competing with human-driven ride-hailing services like Uber and Lyft. However, if these vehicles are affected by the US government's tariff hikes, Waymo might need to reconsider its expansion plans into new cities using these new vehicles.

The US government's tariffs on Chinese electric vehicles undoubtedly pose significant challenges for Waymo. While Waymo insists that its self-driving software is not sourced from China, the US Department of Commerce's regulation prohibiting the use of Chinese software could also impact the company. Ultimately, Waymo must weigh the pros and cons and make decisions about continuing to use Zeekr-made vehicles and how to address the US government's new policies.