Biden’s New Tariffs on China Based on Lessons Learned About Unfair Trading Practices

According to a former official involved in the Biden administration’s review of Chinese import duties, the upcoming announcement regarding new tariffs on China is based on lessons learned about Beijing’s unfair trading practices. The review, which began in 2022 and focuses on duties imposed during the Trump administration, is set to conclude next week and may impact industries including electric vehicles, batteries, solar power, and critical minerals. The announcement is expected to quadruple tariffs on electric vehicles imported from China, increasing the current rate of 25% to around 100%. This move follows Biden’s decision last month to increase tariffs on Chinese steel and aluminum. However, the Biden administration has faced internal debates over how best to balance new duties on strategically important sectors with potential reductions in duties on consumer goods. Former officials such as Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo have been involved in these discussions. While studies suggest that Trump’s previous tariffs could negatively impact the US economy, both Biden and Trump are vying to push tariffs higher. Biden’s approach is described as one of sticks and carrots, with a focus on protecting strategically important sectors such as semiconductors, batteries, critical minerals, personal protective equipment (PPE), and pharmaceuticals. In contrast, Trump’s stance is viewed as being more blunt, allowing manufacturing to grow organically without offering specific incentives. Some critics argue that Trump’s proposed high tariffs could result in inflation. The announcement next week is anticipated to further differentiate Biden’s and Trump’s divergent approaches to trade.