In a significant move aimed at strengthening domestic industries, President Joe Biden on Tuesday announced new tariffs totaling $18 billion on a range of Chinese imports, including electric vehicles (EVs), semiconductors, and steel. The announcement, made from the White House Rose Garden, marks a clear effort by the Biden administration to assert a tougher stance on China compared to previous policies.
Amidst ongoing competition with China, President Biden criticized what he described as China’s unfair trade practices, including heavy subsidies that allow Chinese companies to undercut international markets. “American workers can outwork and outcompete anyone, as long as the competition is fair,” Biden stated, highlighting the need for measures to ensure equitable market conditions.
The most notable tariff increase is on Chinese-made electric vehicles, which will see a hike from 25% to 100%. This dramatic rise underscores Biden’s commitment to fostering the domestic EV market and supporting union jobs. Tariffs on certain steel and aluminum products, semiconductors, and medical equipment like surgical gloves and respirators will also see significant increases.
This strategic move comes as an election-year posture, contrasting Biden’s approach with that of his predecessor and potential 2024 rival, Donald Trump, who had previously imposed tariffs on $300 billion worth of Chinese goods. Biden’s campaign has been quick to position him as more effective in dealing with China, arguing that Trump’s policies failed to significantly alter Chinese import behavior and boost American manufacturing.
The new tariffs, however, have raised concerns among some economists about potential increases in consumer costs and further impacts on inflation. Despite these concerns, Biden hailed the tariffs as a “smart approach” to trade, intended to correct past failures and support American workers and industries.
