Staff Reports
The Biden administration is contemplating an increase in tariffs on specific Chinese goods connected to President Joe Biden’s environmental ambitions, particularly focusing on electric vehicles. This move, as reported by The Wall Street Journal, aims to stimulate a struggling market and protect domestic industries.
Biden Considers Giving Struggling US Electric Vehicle Market Yet Another Big Leg Up https://t.co/IxWESsyw4n
— Beth McDowell RN (@bmcdowelrn) December 21, 2023
Reports suggest a potential hike in the existing tariffs, initially enforced during the Trump era and covering approximately $300 billion worth of Chinese products. Notably, Chinese electric vehicles are currently subjected to a 25 percent import tax, an aspect highlighted by the Journal recently.
The strategic introduction of additional tariffs could potentially bolster domestic electric vehicle manufacturing, a sector grappling with subdued market demand. While the percentage of electric vehicles among total U.S. vehicle sales saw a marginal rise from 3 percent to 4 percent between January and September, the proportion of EVs manufactured out of all vehicles doubled from 3 percent to 6 percent in the same period.
In a speech to members of the United Auto Workers union in Belvidere, Illinois, last November, President Biden firmly stated, “China is determined to dominate the electric vehicle market through unfair means, but I assure you, not on my watch.”
Expanding beyond electric vehicles, the Biden administration is also contemplating tariff increases on other products to support its environmental agenda, such as inexpensive Chinese solar products and EV battery packs, according to the Journal. Additionally, there are considerations to reduce tariffs on certain Chinese consumer goods perceived as less significant.
The discourse around tariffs coincides with China's economic struggles, leading to an influx of low-cost exports that pose a threat to manufacturing in countries like the U.S. The Journal notes the challenges in competing with China’s deeply discounted prices.
Despite being one of the world's largest car exporters, China is experiencing difficulty regaining its pre-COVID economic momentum, with November figures for retail sales and fixed-asset investment falling below expectations.
Meanwhile, the European Union is contemplating whether to elevate tariffs on Chinese EVs as part of its own push for electric vehicles. However, within the Biden administration, some officials are opposed to certain tariffs on China. Treasury Secretary Janet Yellen advocates for scrapping these levies, citing potential help in curbing inflation without disrupting larger plans, the Journal reports.
The tariffs have also strained relations between the U.S. and China, making collaborative efforts challenging. The White House did not immediately respond to inquiries from the Daily Caller News Foundation for comment.
