New levies could soon effect electric vehicle imports from China. The Biden administration announced a plan to set new tariffs of up to 100 percent and import taxes on other Chinese products.
Increases in sectors subsidized by Biden’s Inflation Reduction Act include solar equipment, semiconductors and medical supplies along with electric vehicles (EV).
“My U.S. trade representative is investigating trade practices by the Chinese government regarding steel and aluminum,” President Biden said. “If that investigation confirms these anti-competitive trade practices, then I’m calling on [Katherine Tai] to consider tripling the tariff rates for both steel imports and aluminum imports from China.”
Biden said the new tariffs are about “fair competition” after his aides determined that “imports of Chinese products made from aluminum and steel” were “selling the metals at prices that were falsely low to deplete the market share,” EcoWatch reported.
While new tariffs on electric vehicles could jump from 25 to 100 percent, EcoWatch reported, it is believed that a “flood of cheap Chinese solar panels and parts has caused prices to be cut roughly in half in the past year.”
“We are hopeful the tariff review is done with an eye toward aligning tariffs with strategic priorities including the continued build out of domestic solar manufacturing,” Michael Carr, Solar Energy Manufacturers for America’s executive director, said.
The Biden administration is working to safeguard manufacturing in the U.S. as he campaigns against for President Donald Trump in the presidential election in November. But China official said the new levies are in violation of the rules of the World Trade Organization.
According to Reuters, the new tariffs might be announced as soon as tomorrow.
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