President Joe Biden is set to unveil new tariffs targeting Chinese EVs, semiconductors, batteries, solar cells, steel, and aluminum on Tuesday. The tariffs on EVs are expected to increase to 100%, quadrupling the current rate of 25%, according to a source familiar with the matter.
The Biden administration is taking this action to prevent China from undercutting U.S. companies and jeopardizing American manufacturing jobs. National security adviser Jake Sullivan indicated that the tariffs are aimed at countering the threat posed by China’s unfair business practices.
Sullivan stated, “It’s no secret that the president and this administration have been concerned about China’s unfair practices that harm American workers and businesses, as well as the issue of overcapacity in strategic sectors.”
The increase in tariffs on Chinese EVs is largely symbolic at the moment since Chinese EVs do not make up a significant portion of the U.S. market. However, China’s overall exports have been on the rise, increasing by 50% over the past two years. Chinese EVs are gaining attention for their affordability and quality, with models like BYD’s Seagull receiving praise for their craftsmanship and performance.
The move to hike tariffs on Chinese EVs could alleviate some pressure on U.S. automakers and the United Auto Workers union, which endorsed Mr. Biden’s reelection bid later than in 2020. The president has pledged to support American auto workers and ensure they are not left behind as the economy transitions to EVs.
In his address, Mr. Biden emphasized the importance of retaining jobs in the U.S. and preventing China from dominating the EV market. He stressed the need for companies to retool and rehire workers in the same communities with comparable wages, prioritizing existing union workers for new job opportunities.
As the administration takes steps to protect American industries, the impact of these tariffs on the global trade landscape will be closely monitored.
Vocabulary List:
- Tariffs (noun): Taxes or duties to be paid on a particular class of imports or exports.
- Undercutting (noun): Selling goods or services at a price lower than competitors.
- Jeopardizing (verb): Putting something or someone in a situation of danger or vulnerability.
- Overcapacity (noun): The production capacity of an industry that exceeds the current demand.
- Craftsmanship (noun): Skill in a particular craft or artespecially with regard to quality of workmanship.
- Transition (noun): The process or a period of changing from one state or condition to another.
