US to impose new tariffs on Chinese electric vehicles, chips and renewable energy imports: reports – Firstpost

American and European allies are concerned about the influx of cheap Chinese electric vehicles (Photo: AFP)

According to reports, the United States is set to impose new tariffs on Chinese electric vehicles (EVs), semiconductors, medical supplies and renewable energy imports.

The development comes at a time when the United States and its European partners are deeply concerned about cheap Chinese imports. They fear that China is dumping excess capacity in its markets at the expense of its own industry. Joe Biden’s administration in the U.S. has recently worked to protect U.S. manufacturers from an influx of cheap Chinese imports fueled by subsidies and weak domestic demand.

According to Biden, the Biden administration may increase tariffs on electric vehicles from 25% to 100%. New York Times.

The report also indicated that the increase could be announced as early as next week. Separately, Reuters reported that tariffs could be announced on Tuesday.

What will the US target with new tariffs?

The Biden administration’s new tariffs are expected to affect electric vehicles, imports of renewable energy, semiconductors, medical supplies and industrial metals such as steel and aluminum.

Commodities related to the renewable energy sector to be targeted include solar panels and lithium batteries.

The tariffs are expected to apply to medical supplies, syringes and personal protective equipment (PPE). Reuters.

When it comes to electric vehicles, the Biden administration is particularly concerned about connected vehicles. US President Joe Biden has said such vehicles pose a risk to US national security because they could transmit sensitive information to Beijing. The report shows that the Biden administration is currently considering whether to completely block such vehicles from entering the US market.

Since taking office in 2021, US President Joe Biden has been investing in expanding US manufacturing capacity. He focused particularly on the semiconductor and renewable and clean energy industries – the sectors most affected by China. According to the White House, more than $800 billion in investments in these sectors have been facilitated by Biden’s Investing in America agenda – including the CHIPS Act and the Science Act, which provided massive subsidies.

“I am looking for competition, not fight with China”: Biden

As tensions between the United States and China grow on all fronts, from the Indo-Pacific to trade, Biden has said he is looking for competition, not conflict.

“I am not looking to fight China. I’m looking for competition – fair competition,” Biden said last month in a speech to steel workers in Pittsburgh.

He went on to say, “The bottom line is that I want fair competition with China, not conflict, and that we are in a stronger position to win the 21st century economic competition with China or anyone else because we are investing in America and finally American workers again.”

In the same speech, Biden also said he had instructed U.S. Trade Representative Katherine Tai to investigate China’s trade practices in the steel and aluminum sectors. He further said that tariffs on imports of Chinese steel and aluminum could be tripled if an investigation finds unfair practices.

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