WASHINGTON, D.C: The Associated Press (AP) has reported that the Biden administration plans to impose significant new tariffs on electric vehicles (EV), semiconductors, solar equipment and medical supplies imported from China.
Under the plan, which is expected to be announced on May 14, tariffs on electric vehicles could rise from the existing 25% to 100%.
The White House has criticized China’s manufacturing overcapacity of EV’s and other products that it said could pose a threat to U.S. jobs and national security.
The White House is especially concerned that China’s green energy products will undermine its climate-friendly investments made through the Inflation Reduction Act signed into law in August 2022 by President Joe Biden.
However, as China is seeking to create a technological edge and move up the economic chain, U.S. tariffs could lead to a broader trade conflict between the two countries.
Amid increasing criticism from the West, China could be slowing its production of lithium-ion batteries for EV’s, cell phones, and other consumer electronics.
China’s Ministry of Industry and Information Technology issued a draft rule to strengthening the management of the lithium-ion battery industry and promoting the sector’s high-quality growth.
The draft said that rather than expanding existing capacity, Chinese companies should aim for better technological innovation, higher quality, and lower costs. Lithium battery plants built in restricted farmlands should be shut down or moved to industrial zones.
Ohio Democratic Senator Sherrod Brown said that Tariffs are not enough. We need to ban Chinese EV’s from the USA, period. It will investigate Chinese-made smart cars that can gather sensitive information about Americans driving them.
While only some EV’s from China are available in the American market, officials have expressed concerns that even with a 25% tariff, low-priced Chinese models could eventually flood the U.S. market.
Treasury Secretary Janet Yellen, who traveled to China in early April, said, when the global market is flooded by artificially cheap Chinese products, the viability of American and other foreign firms is put into question.
China Network / ABC Flash Point USA News 2024.
The secret here is that the USA doubles up on Chinese profits for goods delivered, while in the end the consumer foots the entire bill.
“We cannot compete with the Chinese in price so stop Americans buying their products by upping the price to the public ” — yes a “very good idea ” -Not !! poor people wont be able to afford the dearer American automobiles -where,s all this ECO talk now ?
All China has to do is ban all rare metal exports to the USA or its friends and they will be in trouble and Russia should do the same -why send material that can be used in weapons to bomb Russia ?
It has nothing to do with ECO indeed, just WIFM (What’s In it For Me -pharma style sales). The US government cashes in and the consumer pays the price. The USA greed is digging its won grave, but six feet under is not deep enough.