The Biden administration has finalized the plans for aggressively raising tariffs on a long list of Chinese goods, including electric vehicles, solar cells, semiconductors, and other critical sectors as President Biden readies himself for the elections.
The reason for these hikes in tariffs is to protect the American workers and businesses against what the administration is viewing as China's unfair trade practices. It is accusing China of flooding global markets with exports priced below market value, threatening fair competition.
Under the new package, Chinese EVs would see tariffs jump this year from 25 percent to 100 percent, while tariffs on solar cells climb from 25 percent to 50 percent. Also, tariffs on certain steel and aluminum products would jump from 7.5 percent to 25 percent; tariffs on lithium-ion EV batteries would jump from 7.5 percent to 25 percent.
Other products affected include semiconductors, which would have tariffs doubled to 50 percent by next year; some medical products, such as syringes and needles, which would see tariffs jump this year from zero to 50 percent. Tariffs on natural graphite and permanent magnets would also climb from zero to 25 percent by 2026.
After reviewing the issue, President Biden ordered the trade representative to impose these hikes in tariffs under Section 301 of the Trade Act of 1974 on imports from China amounting to $18 billion.
The White House emphasized once again its criticism against China's trading practices, citing that American workers and businesses can compete on a level playing field. Concerns over China's actions with regard to technology transfers, intellectual property, and innovation were again raised by Washington, which said that it is harming U.S. commerce.
President Biden orders tariff increases across strategic sectors in a bid to encourage China to address these concerns. She said U.S. Trade Representative Katherine Tai was committed to using all available tools to ensure support for American jobs and investments, with special regard to China's technology transfer-related practices.
Commerce Secretary Gina Raimondo framed the increase in tariffs as a decision to act in defense of America's competitive industrial base and economic security. She referred to the history of China flooding markets with cheap products, fundamentally undermining U.S. supply chains.
Treasury Secretary Janet Yellen also added that in her visit to China, a problem seen is the industrial over-capacity. The administration will stand strong against such unfair economic practices and avert economic dislocation with cheap, artificial imports.
These follow the discussions initiated by former President Donald Trump on the possibility of further tariff increases on Chinese imports. Once again, the Biden administration makes definite its commitment to the calls against unfair trade practices and protects American interest in the global market.
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