The Biden administration is preparing to raise tariffs on clean-energy goods from China in the coming days, with the levy on Chinese electric vehicles set to roughly quadruple, according to people familiar with the matter. [emphasis, links added]
Higher tariffs, which Biden administration officials are preparing to announce on Tuesday, will also hit critical minerals, solar goods, and batteries sourced from China, according to the people.
The decision comes at the end of a yearslong review of tariffs imposed by former President Donald Trump on roughly $300 billion in goods from China.
Whether to adjust the Trump-era levies divided the Biden administration’s economic advisers for years, with trade officials pushing for higher duties and others, such as Treasury Secretary Janet Yellen, calling for lowering tariffs on consumer goods while focusing duties on strategic sectors.
But signs that China was ramping up exports of clean-energy goods prompted concern in Washington, where officials are trying to protect a nascent American clean-energy industry from China.
Officials are particularly focused on electric vehicles, and they are expected to raise the tariff rate to roughly 100% from 25%, according to the people.
An additional 2.5% duty applies to all automobiles imported into the U.S. The existing 25% tariff on Chinese electric vehicles has so far effectively barred those models, often cheaper than Western-made cars, from the U.S. market.
Biden administration officials, automakers, and some lawmakers worry that wouldn’t be enough given the scale of Chinese manufacturing.
Bloomberg earlier reported that the administration is planning to announce higher tariffs next week. Administration officials cautioned that the timing of the announcement could change.
A White House spokesman declined to comment.
A spokesman for the Chinese Foreign Ministry denounced the Biden administration’s plans in a briefing on Friday, saying the tariffs have disrupted trade between the two countries.
“China will take all necessary measures to defend its rights and interests,” the spokesman said.
The coming presidential rematch is shaping President Biden’s decision. As Trump campaigns for a return to the White House, he has said he is considering imposing tariffs of 60% or more on all Chinese imports—a move likely to escalate the trade war with Beijing he started as president.
Trump has warned that the U.S. auto industry would face a “bloodbath” if he loses in November, and has pledged to impose stiff tariffs on Chinese-made vehicles that are imported into the U.S.
In the race to win swing states like Pennsylvania and Michigan, Biden has promised to protect American industry and workers from foreign competition.
Campaigning in Pennsylvania last month, Biden said he would significantly raise tariffs on steel from China.
Top photo by P. L. on Unsplash
Read rest at WSJ
What is nascent about this industry which has been going at least as long as the Chinese industry? How long has Tesla been making EVs? It’s like saying that wind and solar industries need subsidies to compete against fossil fuels because those industries need support due to how new those industries are.
All this tariff will do is allow the US EV manufacturers to keep their prices high while not innovating to reduce costs. And to keep only the wealthy to afford these EVs and keep them as a novelty.
What I read about a week ago:
The Chinese are planning an EV factory in Mexico. Trump commented, “There will be a 100% tariff charge for those vehicles to enter the US.”
After Biden has wrecked our Fossil Fuel production to appease the Eco-Freaks?! Sorry Biden your price is too High and Americans don’t want EV’s forced upon them they still want the Freedom to choose on their own without Big Brother deciding