Staff Reports
President Biden has made a major announcement on Tuesday: he is increasing the tariff on electric vehicles from China to 100% and raising duties on $18 billion in clean energy products. This includes semiconductors, solar components, and batteries. The tariff on electric vehicles will go up from 25% to 100% starting this year.
Biden to quadruple tariffs on Chinese EVs, solar components, steel, aluminum, semiconductorshttps://t.co/G8NMutnV2d
— Skyking58 (@Skyking581) May 14, 2024
The president is aiming to show voters that he is committed to protecting American industries and workers from foreign competition, especially in critical battleground manufacturing states like Michigan and Pennsylvania. These tariff increases are a part of his efforts to be tougher on China and prioritize American goods.
Some other products that will see tariff increases from China include semiconductors, lithium-ion EV batteries, lithium-ion non-EV batteries, solar cells, and ship-to-shore cranes. Most of the tariffs that were imposed by former President Trump will remain in place after a required review.
President Trump criticized President Biden’s plan during a recent rally. He suggested that if he were re-elected, he would consider imposing even higher tariffs on all Chinese imports.
The decision to raise tariffs comes after concerns about China’s growing production of these goods, which could harm domestic manufacturing and green energy investments. Beijing has urged the U.S. to abide by World Trade Organization rules and remove all tariffs on China.
The Biden administration hopes that by increasing tariffs on electric vehicles, it will prevent a flood of Chinese-made cars from entering the U.S. market. China has not had a strong presence in U.S. markets targeted by the administration because existing tariffs have made it difficult for Chinese EVs to enter the market.
Treasury Secretary Janet Yellen has also warned about China’s investments in new industries, including electric vehicles, lithium-ion batteries, and solar. She expressed concerns that China’s overproduction of these goods could impact global prices and put American and other foreign firms at risk.
The Alliance for American Manufacturing has expressed fears that government-subsidized Chinese EVs could have a detrimental impact on the U.S. auto sector. Elon Musk, CEO of Tesla, has also warned that Chinese EVs could potentially outperform most other car companies in the world without trade barriers.
Overall, the Biden administration’s decision to increase tariffs on Chinese products is aimed at protecting American industries and workers from foreign competition and addressing concerns about China’s overproduction of clean energy products.
