The Biden administration on Tuesday announced plans to slap new tariffs on electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment imported from China.
In response to "China's unfair trade practices and to counteract the resulting harms" from "flooding global markets with artificially low-priced exports," the U.S. is increasing tariffs on $18 billion of imports from China.
It's an election year move that's likely to increase friction between the world's two largest economies. White House officials say the tariffs will help thwart Beijing's efforts to dominate the market for emerging technologies and ways that pose risks to U.S. national security.
Meantime, the tariffs on Chinese EVs aren't about the car at auto market, they're about shaping the market of the future. Chinese companies are building a lot of very good electric vehicles, according to Michael Dunn, who heads the China consulting firm Zozo Go. He said they want to sell them globally at low prices, and these tariffs are a preemptive measure.
"It's a message -- a very strong message -- that made in China cars are not welcome here, at least not for the time being," Dunn told WWJ Newsradio.
Only a few Chinese-made EVs are sold today in the U.S. from Volvo and Polestar, which have Chinese ownership.
The Biden administration said China's government has used unfair, non-market practices for far too long.
"China's forced technology transfers and intellectual property theft have contributed to its control of 70, 80, and even 90 percent of global production for the critical inputs necessary for our technologies, infrastructure, energy, and health care -- creating unacceptable risks to America's supply chains and economic security," the White House said in a statement. "Furthermore, these same non-market policies and practices contribute to China's growing overcapacity and export surges that threaten to significantly harm American workers, businesses, and communities."
The following tariff rates will increase:
• Steel and aluminum -- from 0–7.5% to 25% in 2024
• Semiconductors -- from 25% to 50% by 2025
• Electric vehicles (EVs) -- from 25% to 100% in 2024
• Lithium-ion EV batteries -- from 7.5%% to 25% in 2024
• Lithium-ion non-EV batteries -- from 7.5% to 25% in 2026
• Battery parts -- from 7.5% to 25% in 2024
• Natural graphite and permanent magnets -- from zero to 25% in 2026
• Other critical minerals -- from zero to 25% in 2024
• Solar cells -- from 25% to 50% in 2024
• Ship-to-shore cranes -- from 0% to 25% in 2024
• Syringes and needles -- from 0% to 50% in 2024
• Certain personal protective equipment -- from 0–7.5% to 25% in 2024
• Rubber medical and surgical gloves -- from 7.5% to 25% in 2026