In a bold move to protect American industry, the Biden administration has announced plans to raise tariffs on Chinese electric vehicle imports from 25 per cent to a staggering 100 per cent. This decision comes amidst growing concerns that China could flood the US market with cheap EVs, posing a threat to the American car industry.
President Joe Biden has been taking steps to reassure union members in swing states that he will safeguard jobs, and this tariff increase is a part of that effort. The administration has been reviewing the tariffs imposed by former President Donald Trump on Chinese imports for the past three years as part of the trade war initiated in 2018.
The decision to raise tariffs on EVs is a strategic move by the Biden administration to prevent China from gaining an unfair advantage in the green industrial sector, particularly in the production of solar panels. Wendy Cutler, a former trade official, believes that the higher tariffs will make it harder for Chinese carmakers to undercut their US competitors.
The administration has also invested billions of dollars in subsidies for EV and battery production in the US, aiming to boost investment in the domestic clean tech sector and reduce dependence on Chinese supply chains. Additionally, President Biden has ordered an investigation into whether Chinese “connected vehicles” pose a national security risk to the US.
This latest action by the Biden administration underscores its commitment to imposing costs on China while also seeking to stabilize relations between the two countries. The decision to increase tariffs comes on the heels of the US and China pledging to intensify cooperation on climate-related issues, signaling a complex relationship between the two global powers.