Biden Multiplies Tariffs on Chinese Imports

(Patria) - U.S. President Joe Biden announced the introduction of high tariffs on a wide range of Chinese imported goods, including electric vehicles, chips, and medical products, further escalating tensions with Beijing.

Tariffs imposed by Donald Trump on Chinese goods remain in effect, and the Biden administration has further increased them, quadrupling them for electric vehicles to 100 percent, the White House announced.

The administration cited "unacceptable risks" to U.S. economic security due to cheap Chinese products flooding the global market as justification.

The new measures will also affect imports of Chinese steel and aluminum, semiconductors, batteries, minerals, and solar cells, totaling $18 billion, according to the White House.

In 2023, the U.S. imported $427 billion worth of goods from China, while exporting $148 billion, according to statistical data from the U.S. Census Bureau, a gap that has persisted for years.

"China uses the same principle as before – it increases its growth at the expense of others by continuing to invest, flooding the global market with goods that are undervalued due to unfair business practices," said White House economic advisor Lael Brainard.

Katherine Tai, the U.S. Trade Representative, believes the tariffs are justified because China continues to steal American intellectual property and, in some cases, is becoming "more aggressive" – such as cyber intrusions targeting U.S. technology.

According to her, the new tariffs will not significantly impact the U.S. economy, but will reduce imports from China and encourage imports from other countries.

Although Biden's policy aligns with Trump's on China, he has criticized his predecessor, stating that Trump's China policy did not increase U.S. exports or manufacturing.

The administration claims these tariffs are "carefully targeted," combined with domestic investments, agreed upon with allies, and will not increase inflation in the U.S.

Ahead of the elections, Biden is trying to convince voters of the effectiveness of his economic policy. Although unemployment in the U.S. is low and growth is above expectations, a recent Ipsos-Reuters poll showed Trump with about a 7 percent lead over Biden on economic issues.

Analysts warn that the new tariffs will further increase the cost of manufacturing electric vehicles, thus harming Biden's climate change policy and his efforts to create new jobs.

Biden said he wants to increase competition with China but not start a trade war that would harm both countries. China has stated that the tariffs are counterproductive and increase tensions.