USA imposes extremely high tariffs on goods from China – Economy

US President Joe Biden has ordered sharply increased import tariffs on a number of products from China. The increase is particularly strong for electric vehicles, with a jump from 25 percent to 100 percent, as the US government announced on Tuesday. It is also imposing new or significantly increased tariffs on, among other things, solar cells, semiconductors, harbor cranes and medical items such as cannulas and protective masks.

China is flooding global markets with artificially cheapened exports, according to the government’s announcement. The measures are limited to a few strategically important areas. Biden is striving for a stable relationship with China, the director of the White House National Economic Council, Lael Brainard, assured journalists. Brainard did not want to speculate about possible retaliation from Beijing. According to the US government, the new measures are worth $18 billion.

For Chinese Electric cars There were already tariffs of 25 percent in the USA, which – unlike those in Europe – has so far protected American manufacturers from competition. Chinese manufacturers receive unfair subsidies and could thereby distort competition with cheap vehicles, said Biden’s economic advisor Brainard. Chinese electric car exports will have increased by 70 percent in 2023 – the US government argues that this is endangering investments in other countries. “The president will not allow this to happen,” said Brainard.

Tesla boss Elon Musk, among others, warned at the beginning of the year about the dominance of Chinese manufacturers. “If there are no trade barriers, they will pretty much destroy most other car companies in the world,” he said. Brainard said Biden saw in his hometown of Scranton, Pennsylvania, what happens when manufacturing moves to other countries. That’s why he wants to ensure fair competition.

Biden, who wants to run for re-election in November, made tens of billions during his term in office for investments in, among other things, the chip industry, infrastructure and manufacturing. Biden’s predecessor Donald Trump had already imposed tariffs on imports from China.

An electric car production in China. (Photo: AP/AP)

According to Biden’s plans, tariffs for, for example, will now rise Solar cells this year from 25 to 50 percent. For Harbor craneswhich load and unload ships, new tariffs of 25 percent will be imposed on Medical devices such as syringes and needles by 50 percent. For some protective masks, tariffs will rise from a maximum of 7.5 percent to 25 percent.

At semiconductors Import duties are expected to rise from 25 to 50 percent by 2025. Although not the most modern chips come to the USA from China, semiconductor technology from older production processes, which is used in cars or household appliances, for example. For some metal products tariffs will rise from 7.6 to 25 percent – the same as in Lithium-ion batteries for electric cars.

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