The White House announced United States President Joe Biden's decision to enact higher tariffs on Chinese goods on Tuesday, introducing sweeping duties on Beijing's export of electric vehicles, semiconductors, and minerals to Washington.
The move is aimed at "protecting" American workers and businesses from China's "unfair trade practices." Under the plan, the tariff rate on electric vehicles coming from China will be hiked from 25% to 100% this year after "extensive subsidies" and "non-market practices" heightened the risk of market overcapacity. The levy on semiconductors will increase from 25% to 50% by 2025 as "rapid capacity expansion" risks "driving out investment by market-driven firms."
The duty on lithium-ion EV batteries will be upped from 7.5% to 25% this year, while the tariff on lithium-ion non-EV batteries will go up from 7.5% to 25% in 2026. In addition, the levy on certain steel and aluminum products will be raised from 0-7.5% to 25% in 2024. The tariff rate on solar cells will be increased from 25% to 50% this year.
