U.S. President Joe Biden recently announced increased tariffs on various Chinese imports, including electric vehicles, computer chips, and medical products. This decision could lead to tension with China but is aimed at winning support from voters who have concerns about his economic policies.
China quickly responded, stating its opposition to the tariff hikes and promising to take measures to protect its interests. It urged the United States to cancel the tariffs.
The White House stated that Biden will maintain tariffs introduced by his predecessor, Donald Trump, while also raising others. This includes quadrupling tariffs on electric vehicles to over 100%. The move is meant to address what the White House sees as unfair practices by China, which it believes are harming the U.S. economy.
These new measures affect $18 billion worth of Chinese imports, covering various sectors such as steel, aluminum, semiconductors, batteries, and solar cells. The goal is to address the trade gap between the United States and China, which has existed for many years.
According to the White House, the tariffs are justified due to ongoing issues such as intellectual property theft by China and cyber intrusions targeting American technology. U.S. Trade Representative Katherine Tai emphasized the need for these tariffs to address China’s behavior.
However, some categories of imports from China will be excluded from these tariffs, including certain industrial machinery and equipment used in solar product manufacturing.
Despite aligning with Trump’s trade approach in some ways, Biden criticized his predecessor’s trade deal with China, stating it did not benefit American exports or manufacturing jobs. The Biden administration believes its targeted tariffs, along with domestic investment and collaboration with allies, will not worsen inflation or lead to retaliation from Beijing.
Biden aims to compete with China without sparking a damaging trade war. While both Biden and Trump have shifted away from free trade policies, Biden has engaged in talks with Chinese President Xi Jinping to ease tensions.
The tariff increases will affect various sectors, including electric vehicles, batteries, solar panels, and medical equipment. These changes are part of Biden’s efforts to address concerns about China’s economic practices and ensure fair competition.
