Ingrid Trump, the President-elect of the United States, is planning to continue and expand his tariff strategy from his first term, intending to impose a standard tariff of 20% on imported goods in his second term, with at least a 60% tariff on goods imported from China. It’s not just the United States, but many other countries are also imposing tariffs on Chinese products to curb China’s cheap exports, especially in areas such as semiconductors, solar panels, electric cars, and electric bicycles.
Trump condemned China’s “unfair” trade practices during his first presidential campaign. After taking office as President of the United States for the first time, he officially launched a trade retaliation against China in 2018 under the principle of “reciprocal tariffs.”
Subsequently, the European Union also realized that the subsidies provided by the Chinese Communist government to its export companies have distorted free trade in the global market. More and more countries that have benefited from cheap Chinese products have found their trade deficits increasing, and their domestic manufacturers being squeezed out. As a result, more countries are joining the ranks of imposing tariffs on Chinese products, especially in the technology sector.
United States:
The White House announced in May of this year that the United States will increase tariffs on semiconductors imported from China from 25% to 50% starting in 2025. Although chip design companies like Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) dominate the market in cutting-edge chips, China’s share in traditional semiconductors used for logic, power, or radio frequency functions continues to grow. The Biden administration stated that without imposing tariffs, the United States could risk letting China dominate the production of vital small components for any electronic device, especially after the shortage of these components during the COVID-19 pandemic has disrupted global supply chains.
India:
India imposes a 20% tariff on Chinese semiconductors and similar devices. In February of this year, the Indian government announced a $12.5 billion investment in domestic chip manufacturers, including Tata Group’s first chip factory in India, which is expected to start production in 2026.
United States, Canada, and European Union:
Since 2014, the United States has imposed high tariffs ranging from 11% to 78% on solar panels imported from China and solar cells imported from Taiwan. The United States stated that Chinese manufacturers have unfairly benefited from government subsidies. Following the United States, other regions including Canada and the European Union have also imposed tariffs on Chinese solar panels. In May 2024, the Biden administration announced that the US would once again increase tariffs on Chinese-made solar cells from 25% to 50% to protect itself from the impact of “China’s policy-driven overcapacity.”
India:
India raised tariffs on about 30 products to 25% to 40% in early 2021, including solar cells, chargers, automobiles, electronic products, and agricultural products. While these tariffs are not specifically aimed at Chinese products, some targeted products such as solar cells and panels mainly come from China. Despite the tariffs, India remains one of the largest export markets for Chinese solar components between 2023 and 2024.
South Africa:
South Africa imposed a 10% tariff on the import of solar components and solar panels starting from July 2024. While this is not specifically aimed at Chinese products, China is the main exporter of solar panels and their components.
Vietnam:
According to the China-ASEAN Free Trade Agreement, assembled automobiles imported from China face a 50% tariff in Vietnam. Chinese electric vehicle giant BYD chose to build a factory in Thailand to export to Vietnam duty-free under the free trade agreement among ASEAN member countries.
India:
India’s automobile import tariff is 125%, the highest in the world. This forces foreign car manufacturers to invest in building factories in India. Over the years, companies like General Motors, Kia Motors, and Chinese SAIC Group have established factories in India to produce and sell cars, bringing in billions of dollars in investments to India.
United States:
During his presidential campaign in 2024, Trump promised to impose a 100% tariff on Chinese electric cars to protect American car manufacturers. The then-presidential candidate Joe Biden, who was running for re-election, announced in May of this year that tariffs on Chinese electric cars would be increased from 25% to 100%. Since China has not yet exported a large number of electric cars to the United States, this tariff is seen as a preemptive measure.
European Union:
The market share of Chinese electric cars in Europe surged from 0.5% in 2019 to over 8% in 2023. Following an anti-dumping investigation on Chinese electric cars, the European Commission imposed a tariff of up to 35.3% on Chinese-made electric cars and a 7.8% tariff on Tesla’s Model 3 and Y electric cars imported from China to protect the European market.
Canada:
Following the lead of the European Union and the United States, Canada announced in 2024 that it would impose a 100% tariff on Chinese electric cars and also a 100% tariff on Tesla electric cars made in China. Since Canada does not have its own domestic electric car industry to protect, this move will make US-made Teslas the winners in exporting to Canada. Canada’s tariffs can also help traditional car manufacturers in the United States withstand the impact of electric cars.
Thailand:
Thailand is seeking to transform itself into a powerhouse for electric car manufacturing in Southeast Asia. The country’s incentive is that if each foreign car company produces a specified number of cars in Thailand, the country can reduce import tariffs on their electric cars. This measure benefits Chinese electric car manufacturers the most.
India:
Recently, India reduced its import tariffs on electric vehicles from 70% to 15%, applicable to electric cars priced at over $35,000. The brand must invest a minimum of $500 million in local manufacturing within three years and meet other requirements. Analysts state that this policy aims to attract electric car manufacturers like Tesla to enter India. However, a few days later, SAIC Group, a subsidiary of the Shanghai municipal government, announced a joint venture with India’s JSW Group to produce British MG brand electric cars in India.
Turkey:
In the summer of 2024, Turkey originally planned to impose a 40% tariff on Chinese electric cars, but two days before it was set to take effect on July 7th, Turkey reduced the tax rate to 10%. A few days later, Chinese electric car maker BYD announced plans to build a $1 billion plant in Turkey, allowing for tariff-free exports to the EU.
European Union:
Between 2014 and 2017, sales of Chinese electric bicycles in Europe doubled, with prices dropping and market share increasing by about one-third. The European Commission stated that due to pressure from Chinese competitors, European electric bicycle manufacturers have reduced production despite market growth.
In 2019, the European Union began imposing tariffs on Chinese electric bicycles after finding that the low prices of Chinese-made electric bicycles were due to state subsidies, with tariff rates varying based on the manufacturer and the damage caused to the European market. The highest tariff can reach 62%.
Around the same time, the EU extended the 48.5% tariff on regular bicycles imported from China until 2024, a trade policy in effect since 1993.
United Kingdom:
After Brexit in 2020, the UK inherited tariffs on Chinese electric bicycles from the EU, with rates ranging from 19% to 79%. However, in May of this year, the UK government proposed cancelling these tariffs, believing it could help UK consumers save an average of £260 (around $340) per electric bicycle.
United States:
During Trump’s first term, in 2018, the United States imposed tariffs ranging from 15% to 30% on about $200 billion worth of Chinese products imported into the US, including many consumer electronics. In retaliation, China also imposed tariffs on $60 billion worth of US goods, including agricultural products, foods, and consumer electronics.
India:
India increased tariffs on various personal electronics and household appliances from 10% to 20% in 2020. While these tariffs are not specifically aimed at Chinese goods, China Is still most affected by the actual impact.
Mexico:
In early 2024, Mexico raised tariffs on over 500 products to 5%, including wind turbines, electrical parts, and a range of other products from metals to textiles. These tariffs are not specifically aimed at Chinese products, but China is the main exporter of many of these products. Among them, China manufactures 60% of the world’s capacity of wind turbines.
Mexico raised tariffs due to pressure from the United States, which demanded Mexico prevent China from using it as a backdoor to bypass US tariffs.