US President Joe Biden has announced a 100% tariff on Chinese-made electric vehicles as part of a series of measures to protect US manufacturers from cheaper imports.
In a move likely to escalate trade tensions between the world's two largest economies, the White House announced tougher restrictions on $18 billion worth of Chinese goods.
The measure follows a four-year review and is aimed at stopping cheap, subsidized Chinese products from entering the U.S. market and hurting the growth of the U.S. green technology sector, officials said. It is said to be a preventive measure.
In addition to the tariff increase on EVs from 25% to 100%, the levy on lithium batteries will increase from 7.5% to 25%, on critical minerals from 0% to 25%, and on solar cells from 25% to 50% and from 25%. It will be raised to 25%. % to 50% for semiconductors.
Tariffs on steel, aluminum and personal protective equipment range from zero to 7.5%, rising to 25%.
Despite the risk of retaliation from the Chinese government, Biden said the levy increase was a proportionate response to overcapacity in China's EV sector. Officials say China produces 30 million EVs a year, but only 22 to 23 million can be sold domestically.
Biden's auto tariffs are largely symbolic, as tariffs imposed by President Donald Trump during his presidency effectively kept Chinese EVs out of the United States. But lobby groups have suggested there are future threats as the Chinese government seeks to use exports to offset domestic economic weakness.
The United States Manufacturing Alliance said the introduction of Chinese cars to the U.S. market would be an “extinction-level event” for automakers.
Since taking office, the president has announced a series of measures, including the Anti-Inflation Act and the Chips Act, to boost U.S. industry in high-tech and battleground states where Trump is likely to win the 2024 presidential election. .
Biden has taken a hard line on trade since taking over the White House in 2021, saying his plan offers a more targeted and less risky approach to the Chinese threat than its rivals. I believe.
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President Trump said in March that if elected later this year, he would impose 100% tariffs on “every vehicle that rolls across the line” from Chinese-owned manufacturing plants in China. “They're not going to sell cars like that,” he said. President Trump has promised to raise taxes on all Chinese imports by 60%, but critics say this approach will raise prices for U.S. consumers already suffering from high inflation. .
Biden said in April that he “doesn't want a fight with China” but that the United States must confront China's “unfair economic practices and industrial overcapacity.” “I want competition, but I want fair competition,” he said.
The new tariffs will go into effect 90 days from Tuesday, a period that will be closely monitored for signs of retaliation by China. White House officials said the goal was not to escalate trade tensions, but to support parts of the U.S. economy that had been experiencing continued divestment.
