According to Bloomberg, informed sources revealed that President Biden is preparing to increase tariffs on clean energy products from China this week, with tariffs on Chinese electric cars set to double and tariffs on other key industries also significantly rising. The U.S. government is expected to announce this plan on May 14th.
After nearly two years of deliberation, Biden will raise or add tariffs on key industries from China, including electric cars, batteries, solar panels, steel, and aluminum. Sources say tariffs on Chinese electric cars will jump from 27.5% to 102.5%, with tariffs on other targeted industries also doubling or even quadrupling, although the exact scope is still unclear.
One insider revealed that Biden and his administration have been finalizing these measures in recent weeks, including which products to target and which to exempt, with the final decision being a consensus among stakeholders.
It's currently unclear which goods will be exempted, but it's expected that Biden won't announce any reduction in tariff rates. However, Biden has signaled to the U.S. solar industry that the new tariffs will exclude certain products, including machinery used to manufacture solar panel components.
Notably, Biden's plan to raise tariffs on targeted Chinese industries is seen as largely symbolic, as these industries in China are not heavily reliant on U.S. consumers. Years ago, due to existing tariffs, Chinese electric cars were kept out of the U.S. market, and Chinese solar companies mostly exported to the U.S. from overseas, avoiding similar restrictions.
Former President Trump also took a tough stance on China while gearing up for the November presidential election. He advocated for imposing 100% tariffs on Chinese electric cars four years ago and warned that Chinese companies would try to manufacture cars in Mexico and then ship them to the U.S. under the USMCA to avoid tariffs. Therefore, he proposed imposing 200% tariffs on Chinese-made cars in Mexico and even pledged a comprehensive 60% tariff on all Chinese goods.
In contrast, Biden has not taken such extreme measures. His plan is not a blanket escalation but rather targeted support for affected U.S. industries. However, on the issue of Chinese electric cars posing a threat to the U.S., Biden and Trump have reached a consensus.
