Biden announces 100% tariff on Chinese-made electric vehicles

The US president, Joe Biden, has announced a 100% tariff on Chinese-made electric vehicles as part of a package of measures designed to protect US manufacturers from cheap imports.

In a move that is likely to inflame trade tensions between the world’s two biggest economies, the White House said it was imposing more stringent curbs on Chinese goods worth $18bn.
Sources said the move followed a four-year review and was a preventive measure designed to stop cheap subsidised Chinese goods flooding the US market and stifling the growth of the American green technology sector.

As well as a tariff increase from 25% to 100% on EVs, levies will rise from 7.5% to 25% on lithium batteries, from zero to 25% on critical minerals, from 25% to 50% on solar cells, and from 25% to 50% on semiconductors.

Tariffs on steel, aluminium and personal protective equipment – which range from zero to 7.5% – will rise to 25%.

In response, China’s state mouthpiece news outlet published an editorial on Wednesday, accusing the US of “undermining fair trade and environmental protection”, while saying that it was US
consumers who would bear the brunt of the tariffs.

“Ironically, the United States is a country that touts open economy and free trade, but its actions are against its words. It also promises that it does not seek to decouple from China and hinder China’s development, but its practices tell another story,” it said.

Despite the risks of retaliation from Beijing, Biden said the increased levies were a proportionate response to China’s overcapacity in the EV sector. 

Sources said China was producing 30m EVs a year but could sell only 22m-23m domestically.

In April, Biden said he was “not looking for a fight with China” but that the US needed to stand up to China’s “unfair economic practices and industrial overcapacity”. “I’m looking for competition, but fair competition,” he said.

The new tariffs will kick in after 90 days from Tuesday. 
White House sources said the aim was not to escalate trade tensions but to help parts of the US economy

The US president, Joe Biden, has announced a 100% tariff on Chinese-made electric vehicles as part of a package of measures designed to protect US manufacturers from cheap imports.

In a move that is likely to inflame trade tensions between the world’s two biggest economies, the White House said it was imposing more stringent curbs on Chinese goods worth $18bn.
Sources said the move followed a four-year review and was a preventive measure designed to stop cheap subsidised Chinese goods flooding the US market and stifling the growth of the American green technology sector.

As well as a tariff increase from 25% to 100% on EVs, levies will rise from 7.5% to 25% on lithium batteries, from zero to 25% on critical minerals, from 25% to 50% on solar cells, and from 25% to 50% on semiconductors.

Tariffs on steel, aluminium and personal protective equipment – which range from zero to 7.5% – will rise to 25%.

In response, China’s state mouthpiece news outlet published an editorial on Wednesday, accusing the US of “undermining fair trade and environmental protection”, while saying that it was US
consumers who would bear the brunt of the tariffs.

“Ironically, the United States is a country that touts open economy and free trade, but its actions are against its words. It also promises that it does not seek to decouple from China and hinder China’s development, but its practices tell another story,” it said.

Despite the risks of retaliation from Beijing, Biden said the increased levies were a proportionate response to China’s overcapacity in the EV sector. 

Sources said China was producing 30m EVs a year but could sell only 22m-23m domestically.

In April, Biden said he was “not looking for a fight with China” but that the US needed to stand up to China’s “unfair economic practices and industrial overcapacity”. “I’m looking for competition, but fair competition,” he said.

The new tariffs will kick in after 90 days from Tuesday. 
White House sources said the aim was not to escalate trade tensions but to help parts of the US economy.

Ref: Biden announces 100% tariff on Chinese-made electric vehicles (theguardian)

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