President Biden on Tuesday announced new tariffs on Chinese EVs, semiconductors, batteries, solar cells, steel and aluminum. Tariffs on EVs will be raised to 100%, four times the current 25%.
Mr. Biden has ordered that tariffs on solar cell imports from China be doubled to 50%. Tariffs on some steel and aluminum products will more than triple from below 7.5% to 25%. The Biden administration is also doubling tariffs on Chinese semiconductors from 25% to 50% and increasing tariffs on Chinese medical supplies, batteries, critical minerals, and ship-to-land cranes.
The White House announced that these measures would collectively raise tariffs on $18 billion in Chinese imports, as the administration continues Trump-era tariffs on China under Section 301.
“Cheap Chinese-made EVs that negatively impact American businesses and American workers are not going to promote EV adoption in this country,” a senior administration official said in a Monday call with reporters.
This is the latest attempt by the Biden administration to thwart Chinese aggression. harm US companies And it threatens U.S. manufacturing jobs. National Security Adviser Jake Sullivan did not elaborate on the policy change, suggesting the tariffs are aimed at countering the threat posed by China’s business practices.
“It’s no secret that the president, and the entire administration, is concerned about unjust acts by the state. [Chinese] “It’s about issues that are hurting American workers and businesses, it’s about overcapacity, it’s about the way China is introducing a series of non-market and distorting practices in strategic areas,” Sullivan told reporters at the White House on Monday. He told the group.
Lael Brainard, head of the National Economic Council, told reporters on Monday that China is “doing more than ever to promote its own growth at the expense of other countries” by “flooding global markets” with excessive exports. We’re using the same strategy.”
According to a report by Agence France-Presse, in Beijing on Tuesday, Foreign Ministry Spokesperson Wang Wenbin said that China “always opposes unilateral tariff increases that violate WTO (World Trade Organization) rules, and that it is a legitimate right.” We will take all necessary measures to protect our interests.”
As far as EV tariffs are concerned, the move is largely symbolic for now. Although Chinese EVs do not make up a large portion of the US EV market, overall Chinese exports are rapidly increasing. 50% increase in last 2 years. China produces electric vehicles at a fraction of the price of those made by U.S. automakers, and they have received glowing reviews.
BYD, the world’s largest EV manufacturer, has released a new car, the Seagull. The AP says the car “drives well and is built with craftsmanship comparable to American electric cars three times the price.” It sells for about $12,000 in China, with the short-range version costing less than $10,000.
New tariffs that would sharply raise EV prices in China could ease some of the pressure on automakers and the United Auto Workers union. approved Biden’s re-election was held in January, much later than in 2020. One challenge was the president’s efforts to shift the economy to electric vehicles, which unions feared would negatively impact workers. In accepting his endorsement, Biden promised he would not leave America’s autoworkers behind.
“China is determined to dominate that market, mainly on the back of Chinese-made EVs and Chinese jobs,” he said. “The previous administration was content to stand by and let China do all these jobs, but I won’t let that happen.”
He added: “Companies that move to new technology should retool, restart and rehire at similar wages in the same factories in the same regions, ensuring that existing union members are the first to fill these jobs. He should get a job,” he added.
Administration officials say the president’s announcement on tariffs is unrelated to the upcoming election.
“This has nothing to do with politics,” a senior administration official told reporters, adding that the president’s actions on Tuesday were part of a quadrennial review of U.S. Trade Representative Katherine Tai’s investigation into China’s unfair commercial practices. He emphasized that this reflects the conclusion that the government continues to do so.
Administration officials insisted that the tariffs would not lead to higher prices for U.S. consumers in any way. “There will be no cost increase,” one senior government official said.
In addition to falling prices for high-tech consumer goods produced in China, U.S. officials have warned that Chinese consumer devices connected to the Internet could be used to harm Americans through hacking and espionage. I am concerned that there is.
Democratic Sen. Sherrod Brown proposed a complete ban on imports of Chinese internet-connected vehicles. A senior administration official said the Biden administration does not currently have a position on the issue and that the tariffs are intended to protect American workers and American industry.Administration still investigating whether internet-connected vehicles from China pose a national security threat to the United States
These clean energy tariff increases come after Mr. Biden asked U.S. Trade Representative Katherine Tai to: consider tripling tariffs Regarding Chinese steel and aluminum imports, Mr. Biden made a strategic announcement last month at the United Steelworkers headquarters in Pittsburgh.
