Biden Administration To Increase Tariffs On Chinese Clean Energy Imports In Targeted Response To State Subsidies

The Biden administration is set to implement significant increases in tariffs on imported electric vehicles, solar components, and critical minerals from China, as part of a review required under US trade law. President Joe Biden is seeking to protect domestic industries from state-sponsored competition and encourage clean energy investment, building upon the policies implemented by his predecessor Donald Trump. While Trump proposed a 60% tariff on all goods imported from China, Biden’s approach is more targeted. However, economists warn that increased tariffs could reignite a trade war between the US and China, with negative effects on the US economy. The Office of the US Trade Representative is due to decide by the end of May whether to extend previously granted exemptions from certain tariffs. Treasury Secretary Janet Yellen has raised US concerns over China’s non-market practices in bilateral meetings with Chinese leaders, while Secretary of State Antony Blinken has echoed these concerns in subsequent meetings. The US has been urging its allies in the European Union to impose heavy tariffs on electric vehicles imported into the bloc, highlighting the risks posed by China to domestic car manufacturing and calling for solidarity in tackling a non-market economy. The White House, Treasury Department, and USTR declined to comment.