Biden to increase tariffs on $18 billion in Chinese imports in a new warning to Beijing
CNN
President Joe Biden is increasing tariffs on $18 billion in Chinese imports across a handful of sectors deemed strategic to national security – an attempt to cripple Beijing’s development of critical technologies and instead prioritize US production.
President Joe Biden is increasing tariffs on $18 billion in Chinese imports across a handful of sectors deemed strategic to national security – an attempt to cripple Beijing’s development of critical technologies and instead prioritize US production. The increases will apply to imported steel and aluminum, legacy semiconductors, electric vehicles, battery components, critical minerals, solar cells, cranes and medical products. The new tariff rates – which range from 100% on electric vehicles, to 50% for solar components, to 25% for all other sectors – will take place over the next two years. “China’s using the same playbook it has before to power its own growth at the expense of others,” said Lael Brainard, director of the White House National Economic Council. “China’s simply too big to play by its own rules.” Biden’s predecessor, former President Donald Trump, enacted a sweeping tariff program on $300 billion in Chinese imports during his administration, drawing authority from a provision in US trade law that allows tariffs to be used to stifle competition that would threaten national security interests. That same trade law also requires the effectiveness of such tariff programs to be evaluated every four years, and the Biden administration decision is the result of that study. CNN previously reported on the forthcoming changes. White House officials said they also redrew the parameters of the program to reflect the Biden administration’s policy priorities, most notably the transition to clean energy. “China can’t be the only country that produces clean technology for the world we need,” a senior administration official said. “We need diversified, not concentrated, production of our most critical goods and technologies. … That’s the kind of dynamic we think will produce resilient supply chains and clean technology.”
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