OAN’s Brooke Mallory
10:53 AM – Tuesday, May 14, 2024
President Joe Biden on Tuesday declared the White House would raise tariffs on $18 billion worth of Chinese goods, including electric vehicles (EVs), to counter unfair trade practices by international rivals.
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The U.S. action intensifies what some analysts see as a volatile trade dispute with China as the world’s two largest economies vie for power.
According to the White House, tariffs on electric vehicles will quadruple this year from 25% to 100%. “BYD, China’s leading EV manufacturer, sells cars for as low as $10,000.” NBC News report.
The White House’s Lael Brainard said, “China continues to invest despite overcapacity and uses unfair practices to flood global markets with undervalued exports, thereby improving its own economy at the expense of others.” “We are using the same strategy as before to drive growth.” Economic advisor. “China is too big to play by its own rules.”
China called US attempts to curb international competition “baseless” and refuted claims of overcapacity. China’s Foreign Ministry said on Tuesday that the Chinese government “consistently opposes unilateral tariff increases” that go beyond WTO regulations.
China “will” 1715709605 We will take all necessary measures to protect our legitimate rights and interests,” said spokesperson Wang Wenbin.
The Biden administration has been hinting at this change for weeks. The president said last month that tariffs on Chinese steel and aluminum were likely to triple.
The White House announced the following tariff increases on Tuesday:
- Certain personal protective equipment, including certain respirators and masks, will increase from 0-7.5% to 25% this year.
- Semiconductors will increase from 25% to 50% by 2025.
- Natural graphite and permanent magnets will increase from zero to 25% in 2026.
- Rubber medical and surgical gloves will increase from 7.5% to 25% in 2026.
- Some steel and aluminum products will be raised from 0-7.5% to 25% this year, and battery parts will be raised from 7.5% to 25%.
- Lithium-ion EV batteries are expected to rise from 7.5% to 25% this year, and non-EV lithium-ion batteries are expected to rise from 7.5% to 25% in 2026.
- Certain other critical minerals will increase from zero to 25% this year.
- Solar cells will increase from 25% to 50% this year.
- This year, syringes and needles will go from zero to 50%.
Critics have argued that higher tariffs often backfire, raising inflation and consumer costs, but the administration has insisted that’s not the case.
“There will be no inflationary impact from these measures,” a senior government official told reporters. “They are primarily targeting strategic sectors where we are building up domestic investment.”
Meanwhile, the Trump campaign slammed Biden’s tariff hike proposal.
“After spending much of his presidency undoing President Trump’s trade policies, Biden’s failure to protect American manufacturers is once again plaguing his administration,” said Caroline Leavitt of the Trump campaign. People know it’s too little, too late.” Public Relations Officer. “Forgotten men and women know that President Trump is and always will be the only person who has been tough on China.”
Biden supporters argue that the Biden administration is trying to strike a balance between protecting U.S. manufacturing and lowering the cost of sustainable energy. But critics say protecting U.S. manufacturing is at the bottom of the administration’s list.
“The Biden administration has two conflicting goals…Tariffs are generally bad economic policy,” Alex Durante, an economist at a Washington-based think tank, told reporters. I think the government should stay away from them. ”
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