According to recent reports, the Biden administration is planning to impose significant new tariffs on electric vehicles, semiconductors, solar equipment, and medical supplies imported from China. The new tariffs, which could potentially quadruple the current rate for electric vehicles, are part of a comprehensive revision of former President Donald Trump’s tariffs on Chinese imports.
The announcement, scheduled for as early as next week, will maintain existing tariffs on many Chinese goods set by Trump but will also introduce new tariffs on certain items. In particular, tariffs on Chinese-made medical supplies, such as syringes and personal protective equipment, will also increase.
The new tariffs are aimed at protecting critical strategic sectors for the US economy, such as semiconductors, solar equipment, and electric vehicles, which the administration considers essential for national security and competitive reasons. The move is intended to differentiate Biden’s approach from that of his predecessor, Donald Trump, who had proposed blanket tariffs on all Chinese imports.
However, the new tariffs are likely to provoke retaliation from China, which has already been embroiled in a heated trade dispute with the US. The measures come at a time when US-China relations continue to deteriorate, particularly in the wake of the COVID-19 pandemic, which exposed supply chain vulnerabilities in the US healthcare sector.
Both President Biden and Republican challenger Donald Trump have diverged from the traditional free-trade consensus in Washington, with both advocating protectionist policies. While Trump’s tariff war with China began during his tenure, Biden launched a review of Trump-era tariffs earlier this year. Last month, Biden proposed raising tariffs on Chinese metal products, although the targeted products were limited in range.
The new tariffs may also affect Mexico, which has been accused of allowing Chinese companies to sell metal products to the US indirectly. The Biden administration has put pressure on Mexico to prohibit these transactions.
The move has drawn criticism from some quarters, particularly from Senator Sherrod Brown, who has called for an outright ban on Chinese electric vehicles over concerns regarding data privacy. However, other experts have expressed doubts about the efficacy of protectionist policies, warning that they could lead to inflation and harm both the US and global economy.
China has strongly opposed the tariff measures, arguing that they are counterproductive and harm both the US and global economies. The US-China trade dispute has already caused significant disruption to international commerce and highlighted the need for further dialogue between the two countries.
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