Biden Administration Announces New Tariffs Targeting Clean Energy Products, Semiconductors from China amid Escalating Tensions

As tensions between the US and China continue to escalate, the Biden administration is set to announce significant new tariffs on a wide range of goods coming from China as early as next week. These new tariffs will specifically target clean energy products, including solar goods, critical minerals, and batteries, as well as semiconductors. The move is expected to see electric vehicles (EVs) facing a tariff increase from 25% to as much as 100%, making it significantly more expensive to buy EVs imported from China. This follows calls from lawmakers, such as Senator Sherrod Brown, for a complete ban on Chinese electric vehicles due to privacy concerns. The Biden administration has previously considered adjusting the tariffs imposed by former president Donald Trump, with some advisers advocating for higher levies while others, such as Treasury Secretary Janet Yellen, have argued for the lowering of duties on consumer goods. However, the administration is now taking a more aggressive stance towards China, hoping to demonstrate its commitment to protecting manufacturing in the US ahead of the November elections. Both Biden and Trump have been vying for support in manufacturing-heavy swing states in the Midwest, with Biden promising to prevent job losses in the steel industry, which has seen thousands of workers lose their jobs between 2000 and 2010. The move has drawn criticism from trade experts and Biden allies, who argue that the high proposed tariffs could fuel inflation. The new tariffs are also likely to result in China responding with its own countermeasures, further damaging bilateral relations between the two superpowers.