USA (Washington Insider Magazine)— U.S. President Joe Biden is intensifying tariffs on a range of Chinese imports, including electric cars, solar panels, and steel, with a focus on protecting American jobs. Among the most significant measures is a 100% border tax on electric vehicles (EVs) imported from China. The White House claims these tariffs respond to unfair trade practices, but China has vowed to retaliate.
Analysts view these tariff increases as largely symbolic, aimed at rallying votes in a challenging election year. Biden’s actions come after sustained criticism from former President Donald Trump, who argues that Biden’s pro-electric vehicle stance threatens the U.S. auto industry.
During a speech, Biden emphasized the need to prevent China from “unfairly controlling the market” for essential goods like electric vehicles, batteries, and medical supplies. He stated, “If the pandemic taught us anything, it’s that we need a secure supply of essentials here at home.”
The newly announced tariffs are projected to impact approximately $18 billion in imports. Specifically, tariffs on electric vehicles will rise from 25% to 100%, and solar cell levies will increase from 25% to 50%. Tariffs on certain steel and aluminum products will more than triple, going from 7.5% to 25%.
In response, China’s commerce ministry condemned the tariff hikes, asserting they would “severely affect the atmosphere for bilateral cooperation” and criticizing the politicization of economic issues. A Chinese foreign ministry spokesperson stated that the country would take “all necessary measures” to protect its interests.
These tariffs build upon the extensive border taxes initiated under Trump, aimed at addressing perceived unfair trade practices. In reviewing these measures, the Biden administration received nearly 1,500 comments, primarily from business owners warning that the tariffs would raise consumer prices and calling for their removal.
Biden’s choice to maintain and expand these tariffs, even amid persistent inflation and declining approval ratings, signals a significant shift in trade policy for both major political parties in the U.S. Traditionally supportive of global commerce, both sides are now favoring protectionist measures.
Wendy Cutler, a former U.S. trade official now with the Asia Society Policy Institute, noted that Americans may accept higher car prices in exchange for safeguarding domestic companies and jobs. She stated, “It’s all about trade-offs; maybe cars become more expensive in the short term, but we aim for a competitive industry long-term.”
White House officials have denied that domestic politics influenced the tariff decision, insisting that China shows no signs of rectifying harmful practices, such as requiring Western companies to share sensitive information and offering subsidies that distort market competition. Biden asserted, “They’re flooding the market. It’s not competing—it’s cheating.”
Despite the existing steep tariffs on Chinese electric vehicles, which have significantly curtailed their sales in the U.S., the administration is wary of rising competition from Chinese firms in Europe and elsewhere. Officials stress the importance of ensuring that green technologies are not monopolized by any single country.
While the immediate impact of the electric vehicle tariffs is expected to be minimal, the business community is closely monitoring whether European nations will adopt similar measures. Natasha Ebtehadj from Artemis Investment Management remarked that investors and Chinese companies anticipated such tariffs, especially with both U.S. presidential candidates displaying anti-China sentiments.
Since the onset of a trade war in 2018 initiated by Trump’s tariffs on two-thirds of Chinese imports, both countries have faced economic repercussions. Although these measures have generated over $200 billion in new border taxes for the U.S. government, they have also led to increased costs for everyday Americans, reflected in higher prices for various consumer goods.
Despite the potential for minor inflationary effects, Oxford Economics characterized the latest tariff proposals as “more symbolic bark than bite,” estimating they would only marginally impact inflation by 0.01 percentage points and growth similarly, labeling the effects as a “rounding error.”