President Joe Biden is set to announce a major increase in tariffs on certain Chinese goods this week, aiming to defend American workers. The move comes after nearly two years of review, during which Biden and his team finalised measures to address concerns about unfair trade practices.
The tariff adjustments will see a substantial increase in rates for key sectors. EVs particularly will see the most increase in tariffs, which is set to rise to 102.5% from the present 27.5%, according to sources familiar with the matter. Other tariffs in certain targeted industries are also expected to double or even triple, although the full extent of the changes remains unclear.
Biden and his staff spent recent weeks refining the tariff measures, carefully considering which items to target and which to spare to support American economic growth. While certain items were excluded from tariff increases, there will be no reductions in tariff rates overall.
The administration has indicated its intention to exclude certain items, such as machinery used in solar panel manufacturing, to support Biden’s clean-energy supply chain objectives. The move is aimed at addressing concerns raised by equipment manufacturers about the impact of current tariffs on their operations.
The timing of the announcement of the increase in tariff is important, with the 2024 presidential race influencing Biden’s approach to China. By cracking down on China, Biden aims to distinguish his policies from those of former President Donald Trump while at the same time avoiding the excessive tariff hikes that were proposed by Trump.
The administration’s measures target key sectors, including EVs, batteries, solar cells, steel, and aluminium. Biden aims to protect American industries from potential disruptions caused by a surge in Chinese imports.
While there is bipartisan consensus on the threat posed by Chinese EVs, Biden’s approach focuses on preventing disruptions rather than crushing market segments. The administration aims to balance targeting China with preserving a cooperative relationship.
In response to the impending tariffs, Zeekr Intelligent Technology Holding Ltd., a high-end EV brand out of China said in a statement, ir remains optimistic about its long-term prospects. The administration’s strategic approach to tariffs aligns with its goal of addressing Chinese competition while supporting affected US sectors.
President Biden’s decision to implement tariff increases on Chinese goods reflects a strategic effort to defend American workers and industries while navigating complex dynamics in US-China relations
