President Joe Biden has announced a significant increase in tariffs on $18 billion worth of Chinese imports across various sectors considered crucial for national security. The move aims to hinder Beijing's advancement in critical technologies and promote domestic production in the United States.
The increased tariffs will impact imported steel, aluminum, legacy semiconductors, electric vehicles, battery components, critical minerals, solar cells, cranes, and medical products. The new tariff rates, ranging from 100% on electric vehicles to 25% on other sectors, will be phased in over the next two years.
The decision to raise tariffs follows a study evaluating the effectiveness of the previous tariff program initiated by former President Donald Trump. The Biden administration has redefined the program to align with its policy priorities, particularly the shift towards clean energy.
One of the key changes is the quadrupling of tariffs on electric vehicles imported from China, from 27.5% to 100%. This move is intended to address China's practice of promoting low-priced domestic EVs while imposing high tariffs on American car imports.
White House officials emphasized the need for diversified production of critical goods and technologies, highlighting the importance of resilient supply chains and clean technology. The administration aims to challenge China's dominance in producing clean technology for the global market.
In response to previous tariff actions, China imposed tariffs on billions of dollars' worth of US exports, impacting numerous American jobs. The Biden administration is prepared for potential retaliatory measures from Beijing and has sought support from international partners in addressing China's trade practices.
President Biden has been vocal about the need to level the playing field in trade with China, accusing the country of unfair practices and state-sponsored support for industries like steel production. The administration's stance on trade has resonated with manufacturing-heavy states in the Midwest.
While the US-China trade tensions continue to escalate, the Biden administration remains committed to promoting fair trade practices and protecting national security interests.
