US President Joe Biden officially announced Tuesday a major tariff hike on Made-in-China electric vehicles to curb the surge of cheap products in the domestic market. In addition to EVs, other green energy products like solar cells, semiconductors, steel, and aluminum imports from China will also face an increase in import tariffs.
Biden imposes major tariff hikes on imported Chinese EVs and other green energy products
According to the press release, the Biden administration’s decision to boost import tariffs on Chinese products is part of its wider effort to “protect American workers and businesses from China’s unfair trade practices.”
On May 14, President Biden announced the tariff increases under Section 301 of the Trade Act of 1974, affecting $18 billion of Chinese imports.
Presented below are the tariff hikes on various China-made imports in the US:
| Prior Import Tariff Rate | New Import Tariff Rate | Year of Imposition | |
| Steel and Aluminum | 0–7.5% | 25% | 2024 |
| Semiconductors | 25% | 50% | 2025 |
| Electric Vehicles | 25% | 100% | 2024 |
| Batteries, Battery Components and Parts, and Critical Minerals | Prior Import Tariff Rate | New Import Tariff Rate | Year of Imposition |
| Lithium-ion EV batteries | 7.5% | 25% | 2024 |
| Lithium-ion non-EV batteries | 7.5% | 25% | 2026 |
| Battery parts | 7.5% | 25% | 2024 |
| Natural graphite and permanent magnets | 0% | 25% | 2026 |
| Other critical minerals | 0% | 25% | 2024 |
| Solar Cells | 25% | 50% | 2024 |
| Ship-to-Shore Cranes | 0% | 25% | 2024 |
| Medical Products | Prior Import Tariff Rate | New Import Tariff Rate | Year of Imposition |
| Syringes and needles | 0% | 50% | 2024 |
| Personal protective equipment (PPE) (respirators and face masks) | 0–7.5% | 25% | 2024 |
| Rubber medical and surgical gloves | 7.5% | 25% | 2026 |
“To encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.”
White House
Main purpose of the tariff hikes
President Biden’s National Economic Adviser, Lael Brainard, asserted that the major import hikes primarily seek to avoid the surge of Chinese imports from undercutting the new manufacturing jobs under the Inflation Reduction Act, CHIPS and Science Act, and the Bipartisan Infrastructure Law.
Beacon Policy Advisors Senior Research Analyst Owen Tedford also said that the tariff hikes are politically motivated, coinciding with the upcoming election in November.
“Similar to Biden’s objections to the sale of US Steel to Nippon Steel, the announcement continues the trend of pursuing trade policies aimed at the Rust Belt. Relatively few Chinese EVs were previously being imported so the increase in duties will not reshape the US market.”
Beacon Policy Advisors Senior Research Analyst Owen Tedford (via Nikkei Asia)
More importantly, the US President aims to ensure its domestic industry remains competitive by curbing artificially low-priced products from Chinese companies.
“American workers can out-work and out-compete anyone as long as the competition is fair, but for too long it hasn’t been fair. We’re not going to let China flood our market.”
US President Biden said during a speech in the White House Rose Garden before unions and firms
China’s response
China’s Ministry of Commerce immediately criticized the recent changes in the US market on Tuesday. It even warned that President Biden’s decision would adversely affect the bilateral relations.
“The US’ politicization and weaponization of economic and trade issues are typical examples of political maneuvering. China strongly expresses its dissatisfaction. It will seriously impact the bilateral relations. The US should immediately correct its wrong practices and cancel the tariff measures imposed on China. China will take resolute measures to defend its own rights and interests.”
China’s Ministry of Commerce spokesperson
In addition, the Foreign Ministry Spokesperson Wang Wenbin also slammed the tariff changes on Monday.
“This is self-defeating. It goes against the consensus reached in San Francisco on joint climate response and more importantly it will harm the world’s green economic transition and climate action. We urge the US to stop repairing and digging up the road at the same time, so to speak, and create enabling conditions for China-U.S. climate cooperation and global green transition.”
China’s Foreign Ministry Spokesperson Wang Wenbin said during a press conference in Beijing
These major tariff hikes on China-made products highlight the US government’s strong dedication to protecting the domestic industry and American workers. However, the move will undoubtedly intensify the trade tension between the two largest economies, which can also impede the global shift to green energy.
