Biden harshly hikes tariffs on Chinese imports to protect US businesses
US tariffs on Chinese EVs skyrocket
The Biden administration has taken decisive action to protect US businesses by sharply increasing tariffs on imports from China, the White House announced in a statement on Tuesday.
The move, which targets strategic sectors, aims to address unfair trade practices and safeguard American industries. Here are the key points:
Targeted sectors and tariffs:
The White House has chosen specific sectors for tariff hikes, such as electric vehicles, batteries, semiconductors, aluminum, steel, critical minerals, solar cells, port cranes, and medical products. These tariffs will impact $18 billion worth of Chinese goods.
Specific tariff changes:
– Chinese EVs will face a quadrupled tariff rate of 100 per cent this year.
– Steel and aluminium imports will see their tariff rates roughly tripled.
– Chinese semiconductors will have their tariff rates doubled starting in 2025.
– Solar cells will also face doubled tariffs to 50 per cent this year.
The move follows a multiyear review of tariffs on $300 billion worth of Chinese goods imposed during the Trump administration’s trade war.
President Joe Biden’s administration has decided to maintain most of the existing Trump tariffs.
Lael Brainard, White House national economic adviser, emphasised that these actions aim to protect historic investments in US jobs.
China’s unfair practices, excess capacity, and under-priced exports threaten American industries.
Additional measures:
– Tariffs on Chinese lithium-ion EV batteries will more than triple to 25 per cent this year.
– Similar actions will be taken for lithium-ion batteries used in non-electric vehicles starting in 2026.
Senior US officials deny any connection between these tariff increases and the upcoming presidential election.
President Biden’s other actions, such as opposing Nippon Steel’s acquisition of US Steel, reflect broader economic considerations.
The targeted sectors align with legislative priorities, including the Chips Act and the Inflation Reduction Act.
The goal is not to undercut China’s development but to address global market imbalances.
Beijing accuses Washington of attempting to smear and suppress China’s economy. China opposes unilateral tariff increases that violate World Trade Organisation (WTO) rules, Chinese foreign ministry spokesperson Wang Wenbin said.
