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Biden administration announces increased tariffs on host of Chinese imports

Published 05/14/2024, 09:35 AM
© Reuters.

Investing.com -- The Biden administration has announced that it will increase tariffs on $18 billion worth of Chinese imports, including electric vehicle batteries, semiconductors wafers, and some steel and aluminium products.

According to Reuters, the U.S. Trade Representative's Office anticipates that the hikes will come into effect in approximately 90 days.

In a call with reporters cited by Reuters, Biden economic adviser Lael Brainard accused China of "using the same playbook it has before to power its own growth at the expense of others by continuing to invest, despite excess Chinese capacity and flooding global markets with exports that are underpriced due to unfair practices."

China has promised to retaliate against the measures, while the country's commerce ministry calling on Washington to abandon the move.

Under the White House's plan, tariffs on computer chips will rise to 50% from 25% by 2025 due to China's massive presence in the manufacturing of wafers. The trend risks "driving out investment by market-driven firms," the Biden administration told Reuters.

Electric cars will also see their tariffs surge to 100% from 25% in 2024. Washington has blamed China for unfairly backing its local players in the competitive and lucrative EV market through "extensive subsidies." Tariffs on lithium-ion EV batteries are set to go up as well, from 7.5% to 25%.

Tariffs on some steel and aluminium products -- altogether estimated at roughly $1 billion in goods -- will more than triple, Reuters noted.

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