USA : President Joe Biden announced a significant increase in tariffs on various Chinese imports, including electric vehicles and medical products.
In the hope of stricter regulations on Chinese products, which are allegedly unfair competition, a move which may help American industries to resist unfair competition from China, the Biden administration has recently informed that the American tariffs on purchases from China will be significantly increased. The newest set of tariffs implemented this year covers a list of products such as electric vehicles, solar panels, lithium-ion batteries, and medical products.
Electric Vehicles: 100% tariff
The most salient increase is introducing a 100% duty on electric cars imported from China, which is applied to the current 25% rate tariff. This aimed to end China’s attitude of fully sponsoring its local EV makers, making it the most unfavourable place for American firms to operate. The administration thinks this higher tariff will help restore the industry’s balance position in favour of US manufacturing.
Solar Panels and Batteries: The duties are 50% and 25%
Chinese solar cells will get afro of 50%, and Levies on electric vehicle lithium-ion batteries are going to be 25%, which is higher. These rates reflect the need to decrease China’s entry into the clean energy sector, which is made with great haste and provokes protection for U. S. economic interests.
Steel and Aluminum: 25% Tariffs :
In addition, as sophisticated technology becomes more widely available, it can threaten national security by empowering adversaries to carry out cyber-attacks and undermine the effectiveness of defence systems. This is the first step towards shielding American manufacturing jobs and investing in policies that would tackle the challenges related to China’s industrial rise, which the administration perceived as harming the competitiveness of domestic firms.
Economic Impact
The enlarged tariffs are projected to bring the most significant economic changes to the US. Tariffs are expected to be in an amount that will cut GDP by approximately 0. Within the range of 0% adds if no retaliation is possible, and up to 13% with a possibility of retaliation. 15% with reprisals. Although their managers believe incentives such as tariffs enhance the country’s competitiveness and fulfil the national interests of those industries, they can have unfavourable economic outcomes.
International Reactions
With the involvement of local and foreign stakeholders, the announcement has generated repercussions from the respective parties that staked in the event. The US move is said to be an attempt to hide all the truth as previously, the Chinese Ministry of Commerce was accusing the US of ‘false accusations’ and ‘wrong practices,’ and the US allies such as the European Union, Brazil, and Turkey are among those who will support the US administration’s steps.
Conclusion
Biden’s executive order to levy tariffs on Chinese goods brings a new chapter in efforts to rank America on the top in terms of exporting more and countering unjust business policies. Nonetheless, the impact of these tariffs, if negative, will be relatively small. However, the benefits of these initiatives far exceed the costs. The global economy is a dynamic law that will bring into light how these barriers are moving on international trade and the larger economic picture.
