In a significant shift in trade policy, the White House confirmed on Tuesday that President Joe Biden has decided to impose higher tariffs on a range of Chinese goods, including electric vehicles, semiconductors, and minerals.
This decision marks a major escalation in the trade tensions between the United States and China.
Details of the new tariffs
The move is aimed at “protecting” American workers and businesses from China’s “unfair trade practices.”
Under the plan, the tariff rate on electric vehicles imported from China will be doubled from 25% to 100% this year, following concerns about “extensive subsidies” and “non-market practices” that have heightened the risk of market overcapacity.
Additionally, the tariff on semiconductors will increase from 25% to 50% by 2025.
The duty on lithium-ion electric vehicle batteries will rise from 7.5% to 25% this year, while the tariff on lithium-ion non-electric vehicle batteries will increase from 7.5% to 25% in 2026.
Furthermore, the levy on certain steel and aluminum products will be raised from 0-7.5% to 25% in 2024. The tariff rate on solar cells will also see a significant increase, jumping from 25% to 50% this year.
Potential impacts and reactions
The announcement is likely to provoke a strong response from Beijing and could lead to retaliatory measures, impacting the global trade landscape, particularly in the technology and automotive sectors.
The decision could also have significant economic ramifications, affecting prices and availability of these goods in the U.S. market.
The White House stated that these measures are part of a broader strategy to reinforce domestic production capabilities and secure the United States’ supply chains in strategically important industries.
Further details and reactions from international trade partners and domestic stakeholders are anticipated as the situation develops.
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