Electric Vehicles, Batteries, Solar Power and Other Key Chinese Industries Targeted
Biden Shifts to Hardline Stance Ahead of November Election
The United States plans to announce new tariffs targeting China’s key strategic industries such as electric vehicles, batteries, and solar equipment, Bloomberg reported on the 9th (local time).
Bloomberg, citing sources familiar with the matter, stated that the Biden administration is expected to distinguish its new tariffs from former President Donald Trump’s tariff policies and target China’s core strategic sectors. According to multiple officials, the Biden administration is scheduled to reveal its tariff plan on the 14th.
President Biden began reviewing whether to continue former President Trump’s policies under Section 301 of the U.S. Trade Act in 2022. Trump imposed high tariffs on hundreds of billions of dollars worth of Chinese imports under Section 301. Initially, Biden was opposed to Trump-style tariff policies, but he shifted to a tougher stance ahead of the November election. Various sectors including U.S. industry, labor unions, and some political circles have also called for tariffs on industries such as electric vehicles, steel, and shipbuilding.
According to The New York Times (NYT), Biden’s aides are concerned about China’s overproduction and low-price export offensive. China’s export strategy involves producing beyond domestic demand and exporting at low prices supported by subsidies to increase market share in key industries. Treasury Secretary Janet Yellen and Secretary of State Antony Blinken recently visited China to raise concerns about overproduction.
Last month, President Biden instructed the U.S. Trade Representative (USTR) to raise tariffs on Chinese steel and aluminum products from the existing 7.5% to 25%, more than tripling the rate. Additionally, the USTR has launched investigations into the shipbuilding and shipping industries citing China’s unfair trade practices.
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