Biden Administration Prepares New Tariffs Targeting Chinese Imports, Including EVs and Solar Equipment

The Biden administration is planning to impose new tariffs on Chinese imports, which could potentially target electric vehicles, medical supplies, and solar equipment. These new tariffs are set to be announced as early as Tuesday and would be part of a broader strategy aimed at protecting the US against supply shortages seen during the COVID-19 pandemic. While the impact on Chinese industries is expected to be limited, very few Chinese automakers currently export to the US market. Polestar, which is jointly owned by Geely and Volvo Cars, is the only Chinese automaker to have done so in the first quarter of this year. Polestar’s CEO, Thomas Ingenlath, has previously stated that the company is accelerating efforts to produce more vehicles outside China, with plans to start producing cars in South Carolina for both the US and European markets from 2024. The market for Chinese exports to the US is small, with less than $3.35m in solar cells and $13.15m in completed solar panels exported to the US in 2020 and 2023 respectively, representing less than 0.1% and 0.03% of China’s total exports in those years. However, other Chinese-made medical supplies, such as syringes and PPE, also face additional US tariffs, with the American Medical Manufacturers Association calling for current exemptions to be revoked. In addition, Biden recently called for US tariffs on Chinese metal products to be tripled, affecting over $1bn worth of steel and aluminium imports. These measures follow previous tariffs imposed by former President Donald Trump, which Biden has maintained as part of his tough-on-China stance. Some members of Congress have urged Biden to completely ban Chinese vehicle imports, while others have proposed steeper tariffs.