This week, the Biden administration announced plans to increase taxes on $18 billion worth of Chinese imports, including electric vehicles, semiconductors, lithium-ion batteries, and medical equipment. The move is part of President Joe Biden’s broader strategy to combat China’s unfair economic practices and industrial overcapacity. The aim is to ensure fair competition and protect American workers from China’s market dominance.
While the impact of the new tariffs on Chinese goods may be limited in the short term, there could be challenges in the long term if other economies follow suit. For example, the EU and UK may also increase taxes on Chinese imports, which could create difficulties for Chinese exporters. The Biden administration’s focus on electric vehicles, lithium-ion batteries, rare earths, semiconductors, solar panels, medical equipment, and steel and aluminum products is aimed at reshaping the global trade landscape.
One of the key areas affected by the tax increase is the electric vehicle industry. Chinese companies exporting electric vehicles to the US may face challenges due to the increased tariffs. However, Chinese battery makers planning to build factories in the US, like Envision and Gotion High-tech, could benefit from the tax incentives offered by the Biden administration. The tax increase on rare earths, semiconductors
