US President Joe Biden has decided to increase tariffs on various Chinese-manufactured goods, including electric cars, solar panels, and steel, among others. The White House has justified these measures, including imposing a 100% border tax on electric cars from China, as a response to what it perceives as unfair policies that harm US jobs. China has already voiced its criticism of these plans, which were anticipated beforehand.
These tariffs are seen by analysts as largely symbolic, aimed at garnering support in a challenging election year. They follow a period of criticism by former President Donald Trump, who is running against Biden and has argued that supporting electric cars would be detrimental to the US car industry.
The newly announced tariffs, revealed on Tuesday, will impact an estimated $18 billion worth of imports, according to the White House. They include raising tariffs on electric vehicles from 25% to 100%, and on solar cells from 25% to 50%. Tariffs on certain steel and aluminum products will also increase substantially to 25%, up from 7.5% or less.
These actions expand upon the broad tariffs imposed by the US on Chinese goods during the Trump administration, citing unfair trade practices. During the Biden administration's review of these measures, it received nearly 1,500 comments, with the majority coming from business owners who argued that the tariffs were raising prices for everyday Americans and requested their removal.
Despite concerns about ongoing inflation affecting Biden's approval ratings, he has chosen to maintain and expand these tariffs, signaling a significant shift in US trade policy. Wendy Cutler, a former US trade official, believes that Americans are willing to accept higher prices for cars in order to protect US companies and jobs.
White House officials have denied that domestic politics played a role in the decision, attributing it instead to Beijing's business practices that harm the US, such as forcing Western companies to share information and then stealing it. They also stated that the measures are targeted and not expected to fuel inflation, in contrast to Trump's approach.
While the practical impact of the tariffs on electric vehicles is expected to be minimal, the business world is watching to see if Europe will take similar steps. The US and China have been engaged in a trade war since 2018, which has led to retaliatory measures and a reshuffling of global trade patterns.