FX.co ★ US unveils steep tariff hikes on Chinese imports

American authorities have once again taken aim at Chinese goods, escalating tariffs on imports from China.

According to Reuters, US President Joe Biden has unveiled an amended package of trade tariffs targeting an array of Chinese imports. The adjustments primarily impact electric cars, with tariffs quadrupling. Meanwhile, tariffs originally imposed by former President Donald Trump remain unchanged, while others have seen significant increases. The White House cites "unacceptable risks to America’s supply chains and economic security" created by China's allegedly unfair trade practices, which have flooded the global market with artificially cheap products.

Increased tariffs will reportedly apply to imports of Chinese goods worth $18 billion, including steel and aluminum, semiconductors, batteries, a range of critical minerals, solar cells, and cranes.

Tariffs on electric vehicles will soar to 100% from 25%. Levies on lithium-ion batteries and their components are set to increase to 25% from 7.5%, while those on photovoltaic elements used in the manufacturing of solar panels will double from 25% to 50%. The tariff rates on minerals, ship-to-shore cranes from China, and certain personal protective equipment (PPE) used by medical institutions will rise to 25% from zero, and on syringes and needles - to 50% from zero.

According to the Biden administration, Donald Trump's proposed 10% tariff increase on all US imports could “raise the cost of a wide variety of goods that American businesses and consumers rely on.” At the same time, Democratic Senator Sherrod Brown, who chairs the Senate Banking Committee, says that the government should ban imports of Chinese-made electric cars, claiming they pose risks to Americans’ personal data.

"China is using the same playbook it has before to power its own growth at the expense of others by continuing to invest despite excess Chinese capacity and flooding global markets with exports that are underpriced due to unfair practices," White House National Economic Adviser Lael Brainard said.

Earlier, in March 2024, US Energy Secretary Jennifer Granholm warned that China could flood the US EV market with its offerings. "We are very concerned about China bigfooting our industry in the U.S. even as we are building up now this incredible backbone of manufacturing," she added.

Beijing responded to the imposed restrictions by labeling Washington's assertions as "naked trade protectionism." According to Fu Bingfeng, secretary-general of the China Association of Automobile Manufacturers, claims of excess capacity in the Chinese automotive industry, including electric vehicle makers, are unfounded. The US government has no reason to blow the issue out of proportion and accuse China of posing a threat to US national security, the Chinese representative pointed out.