Biden to Quadruple Tariffs on Chinese EVs
Source: Wall Street Journal
WASHINGTON—The Biden administration is preparing to raise tariffs on clean-energy goods from China in the coming days, with the levy on Chinese electric vehicles set to roughly quadruple, according to people familiar with the matter.
Higher tariffs, which Biden administration officials are preparing to announce on Tuesday, will also hit critical minerals, solar goods and batteries sourced from China, according to the people. The decision comes at the end of a yearslong review of tariffs imposed by former President Donald Trump on roughly $300 billion in goods from China.
Whether to adjust the Trump-era levies divided Biden economic advisers for years, with trade officials pushing for higher duties and others, such as Treasury Secretary Janet Yellen, calling for lowering tariffs on consumer goods while focusing duties on strategic sectors. But signs that China was ramping up exports of clean-energy goods prompted concern in Washington, where officials are trying to protect a nascent American clean-energy industry from China.
Officials are particularly focused on electric vehicles, and they are expected to raise the tariff rate to roughly 100% from 25%, according to the people. An additional 2.5% duty applies to all automobiles imported into the U.S. The existing 25% tariff on Chinese electric vehicles has so far effectively barred those models, often cheaper than Western-made cars, from the U.S. market. Biden administration officials, automakers and some lawmakers worry that wouldn’t be enough given the scale of Chinese manufacturing.
Read more: https://www.wsj.com/economy/trade/biden-to-quadruple-tariffs-on-chinese-evs-203127bf?st=pabsdogfydmou4g&reflink=desktopwebshare_permalink
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