OAN’s Brooke Mallory
10:53 AM – Tuesday, May 14, 2024
President Joe Biden declared on Tuesday that, in an effort to counter what he says are unfair trade practices by its international rival, the White House is raising tariffs on $18 billion worth of Chinese goods, which includes electric cars (EVs).
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The United States’ action intensifies what some analysts perceive to be a tumultuous trade conflict with China as the two largest economies in the world vie for power.
According to the White House, this year’s tariff rate on electric vehicles will quadruple from 25% to 100%. “China’s leading EV manufacturer, BYD, sells the automobiles for as low as $10,000,” NBC News reported.
“China’s using the same playbook it has before to power its own growth at the expense of others by continuing to invest despite excess Chinese capacity and flooding global markets with exports that are underpriced due to unfair practices,” said Lael Brainard, the White House’s national economic adviser. “China’s simply too big to play by its own rules.”
China has called the U.S.’s attempt to stifle international competition “groundless” and refuted the overcapacity claim. Beijing “consistently opposes unilateral tariff increases” that go beyond WTO regulations, the Chinese Foreign Ministry said on Tuesday.
China “will 1715710670 take all necessary measures to safeguard its legitimate rights and interests,” according to spokesperson Wang Wenbin.
For weeks, the Biden administration has been hinting at the change. Last month, the president mentioned that tariffs on Chinese steel and aluminum would most likely be tripled.
The following tariff increases were announced by the White House on Tuesday:
- Certain personal protective equipment, including certain respirators and masks, will increase from 0–7.5% to 25% this year.
- Semiconductors will increase from 25% to 50% by 2025.
- Natural graphite and permanent magnets will increase from zero to 25% in 2026.
- Rubber medical and surgical gloves will increase from 7.5% to 25% in 2026.
- Certain steel and aluminum products will rise from 0–7.5% to 25% this year, and battery parts will rise from 7.5% to 25%.
- Lithium-ion EV batteries will jump from 7.5% to 25% this year, while lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026.
- Certain other critical minerals will increase from zero to 25% this year.
- Solar cells will increase from 25% to 50% this year.
- Syringes and needles will go from zero to 50% this year.
Though detractors contend that higher tariffs frequently backfire and drive up inflation and consumer costs, the administration claimed that this would not be the case.
“There’s no inflationary impact of these actions,” said a senior administration official to reporters. “They’re mainly targeting strategic sectors where we are racking up domestic investment.”
Meanwhile, the Trump campaign blasted Biden’s proposed increase in tariffs.
“After spending much of his presidency fighting to undo President Trump’s trade policies, Biden’s failure to protect American manufacturers is coming back to haunt his administration, and hard-working Americans know it’s too little, too late,” stated Karoline Leavitt, a Trump campaign spokesperson. “The forgotten men and women know President Trump is the only one who has been and will be tough on China.”
Supporters of Biden argue that his administration is attempting to strike a balance between protecting American manufacturing and bringing down the cost of sustainable energy. However, critics maintain that protecting U.S. manufacturing is at the very bottom of the administration’s list.
Alex Durante, an economist for a Washington-based think tank, told reporters that “the Biden administration has two competing goals… Tariffs, in general, are bad economic policy. I think the administration should be moving away from them.”
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