US President Joe Biden has implemented substantial tariffs on various Chinese products, including electric vehicles, batteries, steel, solar cells, and aluminum. These measures are aimed at safeguarding American workers from unfair trade practices. The tariffs range from 25 to 100 percent, covering items such as electric vehicles, semiconductors, and electric vehicle batteries imported from China.
During his address to the nation from the Rose Garden of the White House, Biden emphasized that Americans will retain the freedom to purchase any type of vehicle they desire and said, ” “but we’re never going to allow China to unfairly control the market for these cars. Period.” “I want fair competition with China, not conflict. We are in a stronger position to win that economic competition of the 21st century against China than anyone else because we’re investing in America again,” he said.
Biden asserted that over the years, the Chinese government has injected substantial state funding into various Chinese industries, spanning steel, aluminum, semiconductors, electric vehicles, solar panels, and critical health equipment like gloves and masks.
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These products were heavily subsidized by China, resulting in Chinese companies producing quantities surpassing global demand. The surplus goods were then dumped onto the market at unfairly low prices, leading to the displacement of manufacturers worldwide.
Moreover, Biden highlighted that the artificially low prices were sustained due to the substantial subsidies provided by the Chinese government, alleviating concerns about profitability for Chinese companies. Additionally, China engages in other anti-competitive practices, such as coercing American companies to transfer their technology as a prerequisite for conducting business in China.
Biden emphasized that the newly announced tariffs in crucial sectors of the economy are intended to safeguard American workers from unfair trade practices.
He highlighted that American companies are making significant investments, totaling tens of billions of dollars, in electric vehicles and their batteries. “Our partners around the world are making similar investments. They also want a supply chain for electric vehicles that isn’t dominated by unfair trade practices from China,” he said.
Biden also slammed his predecessor Donald Trump on his China policy. “My predecessor promised to increase American exports and boost manufacturing. But he didn’t either. He failed. He signed a trade deal with China. They were supposed to buy USD 200 billion more in American goods. Instead, China imports from America barely budged,” he alleged.
“And now, Trump and his MAGA Republicans want across-the-board tariffs on all imports from all countries, if reelected. Well, that would drive up costs for families on an average of USD 1,500 per year each year. He simply doesn’t get it,” he said.
At a White House news conference, US Trade Representative Katherine Tie said the previous administration’s trade deal with China failed to increase American exports or boost manufacturing. In fact, China’s exports in some critical sectors like EVs and batteries actually increased, Tie said.
“In response, President Biden signed a memorandum directing me to increase tariffs on critical manufacturing and mining sectors, including steel and aluminium, semiconductors, electric vehicles, batteries, solar cells, and certain critical minerals,” she said.
The augmented tariffs are anticipated to encompass roughly USD 18 billion worth of trade. Additionally, the president has initiated a procedure to seek exemptions for specific production machinery from the tariffs. This initiative aims to enable manufacturers in the solar and clean energy sectors to procure equipment while broadening their supplier base.
In the coming week, she plans to release a public notice outlining the precise tariff lines, rates, and schedule for the proposed tariff hikes. Moreover, details regarding the machinery exclusions process will also be included.
“This strong action by the president is strategic. As he has said, we do not seek to constrain China’s economic development, but we will insist on fair competition and defend American workers from the PRC’s unfair practices.
Today’s direction by the president defends American workers and businesses from the PRCs artificially cheap products, whether EVs or steel or critical minerals or semiconductors,” Tie said.
She underscored that the US remains engaged in consultations with its partners and allies who encounter comparable challenges posed by Chinese unfair trade practices. These allies are actively expressing their apprehensions regarding such unfair practices and are joining in collective actions to address them.
