Biden Administration quadruples tariffs on Chinese electric vehicles

The White House reported that Joe Biden's Government increased tariffs on products from China worth $18 billion. The measure targets strategic sectors such as electric vehicles, batteries, steel and critical minerals. In that sense, the statement detailed that rates on electric vehicles will quadruple from 25% to 100% this year, and those on semiconductors will double, from 25% to 50%, by 2025.

The tariff rate on natural graphite and some other critical minerals will increase from zero to 25%, and that on solar cells will also double from 25% to 50%.

In response to China’s unfair trade practices and to counteract the resulting harms, today, President Biden is directing his Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on $18 billion of imports from China to protect American workers and businesses.

"Today’s actions to counter China’s unfair trade practices are carefully targeted at strategic sectors—the same sectors where the United States is making historic investments under President Biden to create and sustain good-paying jobs—," said a statement released by the White House.

In addition, the Biden Administration highlighted that it is an attempt to defend the American automobile industry. The White House maintained that the decision will encourage growth of the electric vehicle market in the United States.

"This action advances President Biden’s vision of ensuring the future of the auto industry will be made in America by American workers. As part of the President’s Investing in America agenda, the Administration is incentivizing the development of a robust EV market through business tax credits for the manufacturing of batteries and production of critical minerals, consumer tax credits for EV adoption, smart standards, federal investments in EV charging infrastructure, and grants to supply EV and battery manufacturing," highlighted the White House.

In that sense, AFP recalled that, before Washington's announcement was officially published, China had already warned that it would take "all necessary measures" against the decision and reiterated its opposition to tariff increases.