President Biden to Increase Tariffs on $18 Billion of Chinese Exports, Including Electric Vehicles
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President Joe Biden is set to announce on Tuesday that his administration will raise tariffs on $18 billion worth of Chinese exports, with a particular focus on electric vehicles, as part of efforts to combat what it views as unfair trade practices by China.
This move further intensifies what many economists perceive as a precarious trade war between the United States and China as the world’s top two economies vie for dominance.
The White House disclosed that tariffs on electric vehicles will quadruple, skyrocketing from 25% to 100% this year. This decision affects Chinese EV giant BYD, which sells its vehicles for as low as $10,000.
Addressing reporters in a call, White House national economic adviser Lael Brainard accused China of employing familiar tactics to fuel its own economic growth at the expense of others. “China’s simply too big to play by its own rules,” Brainard remarked.
“China’s using the same playbook it has before to power its own growth at the expense of others by continuing to invest despite excess Chinese capacity and flooding global markets with exports that are underpriced due to unfair practices,”
Lael Brainard, the White House national economic adviser, said on a call with reporters. “China’s simply too big to play by its own rules.”
China has vehemently denied accusations of overcapacity, dismissing them as “groundless” and accusing the U.S. of attempting to stifle global competition.
The Chinese Foreign Ministry reiterated Beijing’s opposition to unilateral tariff increases that violate World Trade Organization rules, asserting its intent to protect its rights and interests.
The Biden administration has been hinting at this move for weeks, with Biden previously advocating for tripling tariffs on Chinese steel and aluminum.
The White House provided specifics on the tariff hikes, including increases on certain steel and aluminum products, battery parts, lithium-ion EV batteries, lithium-ion non-EV batteries, critical minerals, solar cells, syringes, and needles.
