Biden Administration Plans to Impose Major Tariffs on Chinese Electric Vehicles and More

The Biden administration is set to impose new tariffs on Chinese electric vehicles, semiconductors, solar equipment, and medical supplies in a move that could have significant implications for the global economy. The tariffs, which are expected to be announced on Tuesday, come as officials express concerns over China’s manufacturing “overcapacity” of EVs and other products that could threaten US jobs and national security.

Of particular concern is China’s green energy products, which the Biden administration fears could undermine the massive climate-friendly investments made through the Democrats’ Inflation Reduction Act. The move also carries political weight going into the November presidential election, with both Biden and his potential challenger, former President Donald Trump, vowing to take a tough stance on China.

While Biden has framed his policy as “competition with China, not conflict,” Trump has advocated for massive tariffs to reduce the US trade deficit with China. The announcement is expected to maintain some tariffs imposed during the Trump administration, covering about $360 billion in Chinese goods, with additional taxes on imports like syringes and solar equipment.

There is a risk that these tariffs could escalate into a broader trade conflict between the two countries as they respond to each other’s moves. China, in particular, is seeking to gain a technological edge and move up the economic chain. The country has shown signs of cooling its production of lithium-ion batteries, which are used in EVs and consumer electronics, in response to increasing criticism from the West.

The Biden administration’s investigation into Chinese-made “smart cars” that could pose national security risks further underscores the growing tensions between the US and China. With the Commerce Department launching an investigation into connected vehicles from China and other hostile countries, the trade relationship between the two economic giants is likely to face further scrutiny in the coming months.