The Biden administration has imposed fresh tariffs on clean-tech products from China – like batteries, electric vehicles, and solar cells – hoping to ‘protect U.S. jobs and manufacturers,’ Associated Press informed last week.
The tariffs prompted a swift response from the Chinese government, which said that they “will seriously affect the atmosphere of bilateral cooperation.” The foreign ministry called this move “bullying.”
According to Finance Asia, the new tariffs “cover about $18 billion worth of imported goods from China against a U.S. trade deficit that reached $280 billion in 2023.”
U.S. President Joe Biden noted that Chinese government subsidies pose a threat to American companies, as Chinese manufacturers get an unfair head start in the global trade.
“American workers can outwork and outcompete anyone as long as the competition is fair,” Biden said, per AP. “The Chinese government has poured state money into Chinese companies … it’s not competition, it’s cheating.”
By imposing a 100% fee on their electric vehicles, the U.S. is hoping to prevent Chinese product domination – despite its minimal share in the American market. On top of that, Washington is trying to push for EV component sourcing like batteries, magnets and rare earths outside of China.
Chinese companies will be working to find ways around the additional tariffs as the Chinese government prepares for responding to them. Rerouting the products via foreign nations or setting up manufacturing plants overseas are some options companies could resort to.
