Biden increases tariffs on Chinese imports of electric cars and chips
Joe Us President Election Risks In Move Tariffs Year Reaction Chinese Biden:
US president Joe Biden has unveiled a bundle of steep tariff increases on an array of Chinese imports, including electric car batteries, computer chips and medical products, risking an election-year standoff with Beijing in a bid to woo voters who give his economic policies low marks.
China immediately vowed retaliation. Its commerce ministry said Beijing was opposed to the US tariff hikes and would take measures to defend its interests.
Mr Biden will keep tariffs put in place by his Republican predecessor Donald Trump while ratcheting up others, including a quadrupling of electric vehicle duties to more than 100% and doubling the duties on semiconductor tariffs to 50%, the White House said.
The new measures affect $18bn (€16.6bn) in imported Chinese goods, including steel and aluminum, semiconductors, electric vehicles, critical minerals, solar cells and cranes, the White House said.
The US imported $427bn in goods from China in 2023 and exported $148bn to the world's number two economy. Even as Mr Biden's steps fell in line with Mr Trump's premise that tougher trade measures were warranted, the Democrat took aim at his opponent in November's election.
The White House said Trump's 2020 trade deal with China did not increase American exports or jobs, and it said the 10% across-the-board tariffs on goods from all points of origin Mr Trump has proposed would frustrate US allies and raise prices. Mr Trump has floated tariffs of 60% or higher on all Chinese goods.
Mr Biden has struggled to convince voters of the efficacy of his economic policies despite a backdrop of low unemployment and above-trend economic growth.
As part of the long-awaited tariff update, Mr Biden will increase tariffs this year under Section 301 of the Trade Act of 1974 from 25% to 100% on electric cars, on lithium-ion batteries and other battery parts and on photovoltaic cells used to make solar panels. Some critical minerals will have their tariffs raised from zero to 25%.
More tariffs will follow in 2025 and 2026 on semiconductors, as well as lithium-ion batteries that are not used in electric vehicles, graphite and permanent magnets as well as rubber medical and surgical gloves.
A step Mr Biden previously announced to raise tariffs on some steel and aluminum products will take effect this year.
- Reuters