US President Joe Biden speaks during his visit to Gateway Technical College in Sturtevant, Wisconsin, USA, on May 8, 2024, as part of his Invest in America agenda.
Kevin Lamarque | Reuters
America president Joe Biden China is set to announce new tariffs targeting strategic industries as soon as next week, including a significant increase in tariffs on electric vehicles (EVs), according to three people familiar with the matter.
The full announcement on Tuesday is expected to maintain existing tariffs on many Chinese goods set by former President Donald Trump, a person familiar with the matter said.
But it will also add new tariffs on semiconductors and solar equipment and increase tariffs on electric vehicles, according to a person familiar with the matter. Sources told Reuters that Chinese-made medical supplies such as syringes and personal protective equipment also face additional tariffs.
One of the people familiar with the matter said that when revising the so-called “Section 301 tariffs”, the Biden administration will target industries it calls strategic competition and national security areas.
The long-awaited tariff update comes after many lawmakers called for a significant increase in Chinese auto tariffs. Relatively few Chinese-made light vehicles are currently imported.
Under Biden’s new plan, tariffs on Chinese electric vehicles will roughly quadruple, the Wall Street Journal reported, citing people familiar with the matter. Senate Banking Committee Chairman Sherrod Brown wants the Biden administration to ban Chinese electric vehicles outright over concerns they pose risks to Americans’ personal data.
The Office of the U.S. Trade Representative made its recommendations to the White House weeks ago, but the final release has been delayed due to internal discussions, sources said. Some sources said it could be later than Tuesday.
Biden, Democrat seeking re-election in November, hoping to contrast his approach with that of the Republican candidates trump cardWhite House officials believe that the comprehensive tariff measures proposed by Trump are too harsh and may easily trigger inflation. Trump has promised to impose tariffs of 60% or higher on all Chinese goods.
The White House and the Office of the U.S. Trade Representative declined to comment.
The measures could invite retaliation from China at a time of rising tensions between the world’s two largest economies. Trump imposed broader tariffs during his 2017-2021 presidential term, triggering a tariff war with China.
Both 2024 candidates represent a serious departure from the free trade consensus that Washington once dominated, a period that ended with China joining the World Trade Organization in 2001.
In 2022, Biden launched a review of Trump-era policies under Section 301 of the U.S. Trade Law. Last month, he called for a sharp increase in U.S. tariffs on Chinese metal products, but targeted a narrow range of products estimated at more than $1 billion in steel and aluminum products, a U.S. official said.
Biden also announced an investigation into China’s trade practices in shipbuilding, maritime and logistics, a process that could lead to more tariffs.
The Biden administration has also been putting pressure on neighboring Mexico to ban China from indirectly selling metal products from Mexico to the United States.
China says the tariffs will be counterproductive and cause damage to the U.S. and global economies.
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