New Tariffs on Chinese Electric Vehicle Imports Expected from Biden Administration

The Biden administration’s plan to set new tariffs on electric vehicle imports from China has sparked a debate on the impact it will have on the global market. The tariffs, which could be as high as 100 percent, are part of a broader review of former President Donald Trump’s import taxes on Chinese products.

The New York Times reported that most of Trump’s levies are expected to continue, with additional tariffs in sectors subsidized by Biden’s Inflation Reduction Act. In addition to electric vehicles, other products such as solar equipment, semiconductors, and medical supplies could also face new levies.

The Associated Press reported that electric vehicles could see a significant jump in tariffs, from 25 to 100 percent. The announcement of these tariffs is expected to come soon, according to Reuters.

Ohio Senator Sherrod Brown and other Democrats have urged Biden to take stronger action to protect the U.S. automobile industry. Brown suggested completely stopping the import of electric vehicles from China, citing the “existential threat” posed to American carmakers.

In a recent address to Pittsburgh steelworkers, Biden also expressed concerns about China’s trade practices in the steel and aluminum industries. He called for an investigation into these practices and suggested tripling the tariff rates on steel and aluminum imports from China if anticompetitive practices are confirmed.

The president’s actions are aimed at promoting fair competition and safeguarding manufacturing in the U.S. ahead of the upcoming presidential election. China has been flooding the global market with inexpensive products like solar panels, electric vehicles, and batteries, leading to a significant drop in prices.

The Solar Energy Manufacturers for America’s executive director, Michael Carr, expressed hope that the tariff review would align with strategic priorities, including the development of domestic solar manufacturing. However, Beijing has criticized the potential new levies, arguing that they violate World Trade Organization rules.

Greta Peisch, a former U.S. trade representative’s office general counsel, emphasized the importance of higher import taxes to ensure the competitiveness of the U.S. automobile sector against heavily subsidized electric vehicles from China. She noted that China’s policies have led to an oversupply of electric vehicles, requiring measures to counteract this trend.

Overall, the debate over new tariffs on Chinese imports reflects broader concerns about trade practices, competition, and the future of the global market. The outcome of these tariffs could have far-reaching implications for various industries and economies worldwide.