Biden set to quadruple tariffs on Chinese electric vehicles
- Biden wants to quadruple the number of electric vehicles from China
- According to reports, the fourfold increase in tariffs on clean energy goods from China will be announced on Tuesday
The Biden administration will announce a fourfold increase in electricity tariffs from China, according to new reports.
Officials will announce the significant increase in duties on clean energy goods from China on Tuesday. reports the Wall Street Journal.
The decision will also affect crucial minerals, solar products and batteries, sources familiar with the matter told the Journal.
Tariffs on about $300 billion of Chinese goods were first imposed by Donald Trump and have been subject to a years-long review by the White House.
Evidence that China increased its exports of electrical products pushed policymakers in Washington to higher levels in an effort to protect the nascent U.S. clean energy industry.
Chinese electric vehicles, such as BYDs (pictured), will soon be subject to a tariff of around 100 percent, according to reports
Biden will announce a fourfold increase in the number of electric vehicles from China
The current tariff for Chinese electric vehicles is 25 percent and is expected to increase to about 100 percent, the Journal reports.
It has effectively blocked the vehicles, which can often be cheaper than Western-made cars, from the US market.
However, ramping up Chinese production has the White House and U.S. automakers concerned that current tariffs are no longer enough.
China’s Foreign Ministry responded to the plans during a briefing on Friday, saying tariffs have disrupted trade between the US and China.
“China will take all necessary measures to defend its rights and interests,” a ministry spokesperson said.
Protecting American industry and jobs from foreign competition has been a key message for Biden as he tries to advance swing states like Pennsylvania and Michigan ahead of the November election.
“These are strategic and targeted actions that will protect American workers and ensure fair competition,” Biden said during a campaign visit to Michigan last month.
The president told workers he would raise tariffs on Chinese steel to protect manufacturing jobs in the state.
Tariffs will also increase on critical minerals, solar products and batteries from China
Trump, in turn, has stated that he would increase tariffs on all Chinese imports to 60 percent if he were reinstated in the White House.
The former president has also argued that the US auto industry could face a “bloodbath” if he loses.
China is trying to increase its clean energy production as a way to boost its collapsing economy.
However, Treasury Secretary Janet Yellen has repeatedly warned against this approach, arguing that other countries will simply impose tariffs and other barriers to protect their own industries from a flood of cheaper Chinese exports.
“China is too big to export its way to rapid growth,” she said during a recent visit to Chinese officials.