On Tuesday, US President Biden announced a significant increase in tariffs on a range of Chinese imported products, including electric cars, computer chips, and medical products, in response to the unfair trade practices of the Chinese Communist Party and to offset the resulting harm, protecting American workers and businesses.
The White House stated in a release that Biden would maintain the tariffs imposed by his predecessor, Donald Trump, while ramping up the intensity of other tariffs, citing China’s unfair practices posing “unacceptable risks” to US “economic security” and these practices are flooding global markets.
The new measures affect Chinese imports worth $18 billion, including steel and aluminum, semiconductors, batteries, critical minerals, solar panels, and cranes.
According to the US Census Bureau data, in 2023, the US imported $427 billion worth of goods from China and exported $148 billion worth of goods to China, generating a trade deficit that has persisted for decades, becoming an increasingly sensitive topic in Washington.
Trump had previously proposed tariffs of 60% or higher on all Chinese goods.
The White House stated that the Chinese government has long engaged in unfair, non-market practices, controlling 70%, 80%, or even 90% of global production through forced technology transfer and intellectual property theft, posing unacceptable risks to US supply chains and healthcare. Additionally, these non-market policies and practices have led to Chinese overcapacity and a surge in exports, potentially harming the interests of American workers, businesses, and communities.
According to Reuters, White House National Economic Advisor Lael Brainard stated, “Despite Chinese overcapacity and low-priced exports flooding global markets due to unfair practices, China continues to invest, sacrificing the interests of other countries to drive its economic growth.”
US Trade Representative Dai Qi stated that the adjusted tariffs are reasonable because China continues to steal US intellectual property and in some cases, aggressive cyber intrusions aimed at American technology networks are becoming increasingly brazen.
She indicated that the previous “Section 301” tariffs had effectively reduced the quantity of Chinese goods imported to the US while increasing imports from other countries.
However, Dai Qi recommended exempting dozens of industrial machinery products imported from China, including 19 types of solar energy manufacturing equipment, from tariffs.
Biden had expressed his desire to win this era of competition with China but without provoking a trade war that could harm both sides.
Government officials stated that their actions are “clearly targeted,” coordinated with domestic investments and closely aligned with allies, minimizing the risk of exacerbating inflation that has already angered American voters and threatened Biden’s re-election campaign; they also downplayed the risk of Beijing’s retaliation.
China has warned that tariffs could backfire, increasing tensions.
Biden has been working to convince voters of the effectiveness of his economic policies. A Reuters/Ipsos poll from last month showed that Trump holds a 7% higher support rating than Biden on economic issues.
China’s accession to the World Trade Organization in 2001 marked the end of the once-prevailing consensus on free trade in Washington.
As part of the long-awaited tariff updates, Biden will increase tariffs on electric cars from 25% to 100% under Section 301 of the Trade Act of 1974, reaching a total tariff of 102.5%. Tariffs on lithium-ion electric vehicle batteries and other battery components will rise from 7.5% to 25%; for photovoltaic cells used in manufacturing solar panels, tariffs will range from 25% to 50%, and tariffs on “certain” critical minerals will go from zero to 25%.
Tariffs on ship-to-shore cranes will increase from zero to 25%, while tariffs on syringes and needles will rise from zero to 50%, and tariffs on some personal protective equipment used in medical facilities will increase from zero to 25%.
In 2025 and 2026, the US will impose higher tariffs on semiconductors, lithium-ion batteries for non-electric cars, graphite and permanent magnets, as well as rubber medical and surgical gloves, doubling the rates to 50%. With China dominating most of the production of personal protective equipment, shortages have hampered the US response to the COVID-19 pandemic.
The White House stated that previous actions to increase tariffs on certain steel and aluminum products would take effect this year.
Many lawmakers are calling for a significant increase in tariffs on Chinese automobiles. Currently, the US imports relatively fewer light vehicles manufactured in China. Senate Banking Committee Chairman Sherrod Brown hopes the Biden administration will completely ban Chinese electric cars to avoid risks to Americans’ personal data.
US Treasury Secretary Janet Yellen previously warned China in April that excessive production of electric cars and solar products was unacceptable. She stated that US allies share these concerns widely, and the actions are taken “not out of anti-China policy, but out of a desire to prevent destructive economic imbalances caused by unfair economic practices.”