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Biden announces 100% tariff on Chinese-made electric vehicles | International trade | The Guardian

  

Category:  News & Politics

Via:  kavika  •  6 days ago  •  12 comments

By:   Donald Trump (the Guardian)

Biden announces 100% tariff on Chinese-made electric vehicles | International trade | The Guardian
White House levy to protect US makers from cheap imports likely to inflame trade tensions

S E E D E D   C O N T E N T


White House levy to protect US makers from cheap imports likely to inflame trade tensions

The US president, Joe Biden, has announced a 100% tariff on Chinese-made electric vehicles as part of a package of measures designed to protect US manufacturers from cheap imports.

In a move that is likely to inflame trade tensions between the world's two biggest economies, the White House said it was imposing more stringent curbs on Chinese goods worth $18bn.

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Sources said the move followed a four-year review and was a preventive measure designed to stop cheap subsidised Chinese goods flooding the US market and stifling the growth of the American green technology sector.

As well as a tariff increase from 25% to 100% on EVs, levies will rise from 7.5% to 25% on lithium batteries, from zero to 25% on critical minerals, from 25% to 50% on solar cells, and from 25% to 50% on semiconductors.

Tariffs on steel, aluminium and personal protective equipment - which range from zero to 7.5% - will rise to 25%.

Despite the risks of retaliation from Beijing, Biden said the increased levies were a proportionate response to China's overcapacity in the EV sector. Sources said China was producing 30m EVs a year but could sell only 22-23m domestically.

Biden's car tariffs are largely symbolic because Chinese EVs were virtually locked out of the US by tariffs imposed by Donald Trump during his presidency. However, lobby groups have suggested there is a future threat as Beijing seeks to use exports to compensate for the weakness of its domestic economy.

The Alliance for American Manufacturing has said the introduction of Chinese cars to the US market would be an "extinction-level event" for its carmakers.

Since arriving in office, the president has announced a series of measures - such as the Inflation Reduction Act and the Chips Act - to boost US industry in hi-tech sectors and in battleground states, where the 2024 election with Trump is likely to be decided.

Biden has taken a hard line on trade since arriving at the White House in 2021 and believes his plan offers a more targeted - and less risky - approach to the threat posed by China than that of his rival.

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In March, Trump said that, if elected as president later this year, he would put a 100% tariff on "every single car that comes across the line" from Chinese-owned manufacturing plants in China. "They are not going to sell those cars," he said. Trump has promised to raise taxes on all Chinese imports by 60%, an approach critics say would raise prices for US consumers already grappling with high inflation.

In April, Biden said he was "not looking for a fight with China" but that the US needed to stand up to China's "unfair economic practices and industrial overcapacity". "I'm looking for competition, but fair competition," he said.

The new tariffs will kick in after 90 days from Tuesday - a period that will be closely watched for signs of tit-for-tat retaliation by China. White House sources said the aim was not to escalate trade tensions but to help parts of the US economy where there had been a cycle of disinvestment.

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Kavika
Professor Principal
1  seeder  Kavika     6 days ago

If China builds a plant in Mexico how will that work with NAFTA?

If they try to build a plant in the US will we block it?

 
 
 
Nerm_L
Professor Expert
1.1  Nerm_L  replied to  Kavika @1    6 days ago
If China builds a plant in Mexico how will that work with NAFTA? If they try to build a plant in the US will we block it?

Excellent questions.  We have seen this movie before.  The Chinese government could even go on a stock buying binge to obtain ownership.  Dodge/Chrysler/Stellantis seems to be as vulnerable as ever.  Or the Chinese could maybe revive a dead badge.  (American Motors producing Chinese EVs?)  Besides that, a 100 pct tariff still allows the Chinese EVs to be price competitive with domestically produced vehicles.  China could simply agree to pay the 100 pct tariff. 

Biden will likely manipulate safety and environmental regulations to ban Chinese EV imports.  Or impose some sort of nebulous humanitarian criteria to allow importation.  That has been the preferred method utilized by Democrats in the past.  

 
 
 
Robert in Ohio
Professor Guide
2  Robert in Ohio    6 days ago

In 2022 the U.S. exported over $15 Billion in agricultural crops (soy beans, etc) to China - if China places a 100% tariff on those how does that affect the US farmers?

Are tariffs really the answer to all that ails our economy?

 
 
 
Buzz of the Orient
Professor Expert
2.1  Buzz of the Orient  replied to  Robert in Ohio @2    6 days ago

China will probably just buy from other nations, and Biden's tariffs will make American consumers choke from everyday necessary items becoming unaffordable.  I wonder how many votes Biden is going to lose, after he's bound to lose a lot of votes because of his sabotaging Israel.  Personally, even if I COULD vote in the USA, (which of course I cannot do) I would NEVER vote for Biden, and considering who there is to vote for, I wouldn't vote at all.  America doesn't fine people for not voting like Australia does. 

 
 
 
Kavika
Professor Principal
2.2  seeder  Kavika   replied to  Robert in Ohio @2    6 days ago

During the Trump administration the Chinese did retaliate the the farmers took a hit, so bad that the Trump administration had to support them and I think that is still in effect.

Are tariffs really the answer to all that ails our economy?

IMO, no they are not and this one is like a preemptive strike since BYD or any Chinese car company is exporting cars to the US. 

Since GM has plants in China and it a good market for them you can also expect the Chinese to shut out GM.

This is being done because Musk and the American auto makers are crying wolf that they will be destroyed if the Chinese enter the EV market in the US.

 
 
 
Nerm_L
Professor Expert
2.3  Nerm_L  replied to  Robert in Ohio @2    6 days ago
In 2022 the U.S. exported over $15 Billion in agricultural crops (soy beans, etc) to China - if China places a 100% tariff on those how does that affect the US farmers? Are tariffs really the answer to all that ails our economy?

$15 billion is only a quarter of what Biden is spending on his Ukraine quagmire.  And Kiev will be begging for more before years end.  Besides that, the United States imports about $200 billion of agricultural products; including corn, soy beans, rice, and wheat.  The United States really is running a trade deficit for agricultural products.  That means the United States really is dependent upon the rest of the world to feed itself.  That's disheartening.

It's pretty amazing how much all this free trade crap has weakened the United States.  So, yes, tariffs are part of the answer but only a part.  The role of the Federal government in fixing our trade imbalance is to incentivize domestic production and impose disincentives on importation.  Domestic production really is a national security issue; it's not just about consumer economics.

But we all know that Biden is only using tariffs as a political stunt to claim he is the real MAGA President.  Biden is deliberately creating a petrodollar crisis and he's really not doing anything to prepare for that crisis.  Since the United States no longer competes in global trade as a producer, it really is becoming necessary to isolate from the world to protect the value of the dollar.  Biden killing fossil fuels means the world no longer needs US dollars.  The fear is the world will no longer want US dollars.  If we think inflation is bad now, we ain't seen nuthin' yet.

 
 
 
Robert in Ohio
Professor Guide
2.3.1  Robert in Ohio  replied to  Nerm_L @2.3    6 days ago

$15 Billion is a lot of money to the farmers

It will crush a significant part of the industry if that market is closed to them

 
 
 
Krishna
Professor Expert
2.3.2  Krishna  replied to  Nerm_L @2.3    6 days ago
$15 billion is only a quarter of what Biden is spending on his Ukraine quagmire.

What Biden is spending? I just checked-- the House vote on aid to Ukraine was 311 for, and only 112 against. (So while its true that Biden was in favor of it so did an overwhelming majority of the entire House of Representatives.

Many people are  unfamiliar with the process-- as defined by the Constitution of the United States of America:

The  Origination Clause , sometimes called the  Revenue Clause , [1] [2]  is  Article I , Section 7, Clause 1 of the  U.S. Constitution . The clause says that all bills for raising  revenue  must start in the  U.S. House of Representatives , but the  U.S. Senate  may propose or concur with amendments, as in the case of other bills.

Must start in the House! 

Where, with both parties voting, it passed overwhelmingly, 311  to 112!

 
 
 
Krishna
Professor Expert
2.3.3  Krishna  replied to  Robert in Ohio @2.3.1    6 days ago
$15 Billion is a lot of money to the farmers It will crush a significant part of the industry if that market is closed to them

And, of course, it will be a major influence on how they vote . . . 

 
 
 
Krishna
Professor Expert
2.4  Krishna  replied to  Robert in Ohio @2    6 days ago
In 2022 the U.S. exported over $15 Billion in agricultural crops (soy beans, etc) to China - if China places a 100% tariff on those how does that affect the US farmers? Are tariffs really the answer to all that ails our economy?

Sometimes its a difficult decision as to whether tariffs help-- or hurt-- our economy more. If we place tariffs on imports from any country-- they may retaliate by placing tariffs on their imports from the U.S.

As you mentioned, the Chinese use a lot of Soy in their cooking. (The "Bean Curd" in Chinese food is actually Tofu-- i.e. Soy). And they use a lot of Pork. If they put tariffs on these products that are imported from the U.S., American farmers will be hurt.

 
 
 
Krishna
Professor Expert
2.4.1  Krishna  replied to  Krishna @2.4    6 days ago
As you mentioned, the Chinese use a lot of Soy in their cooking. (The "Bean Curd" in Chinese food is actually Tofu-- i.e. Soy). And they use a lot of Pork. If they put tariffs on these products that are imported from the U.S., American farmers will be hurt.

In addition, tariffs are inflationary (putting tariffs on things raises their price). 

 
 
 
Buzz of the Orient
Professor Expert
2.4.2  Buzz of the Orient  replied to  Krishna @2.4.1    6 days ago

Making the spiral spin upwards, making life even more difficult for Americans to survive financially.  How do you think that will end?

 
 

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