U.S. President Joe Biden is gearing up to unveil new tariffs targeting key sectors in China, including electric vehicles, in a move expected to be announced as early as next week, as reported by two sources familiar with the matter. The anticipated announcement, possibly slated for Tuesday, is anticipated to uphold existing levies, with potential delays still on the table, noted one of the informants. Strategic sectors such as semiconductors and solar equipment are also slated for inclusion in the targeted tariffs, according to another source.
While specifics regarding the tariff values or categories remain vague, the administration is reportedly honing in on areas of strategic importance for competitive and national security reasons. Recommendations from the U.S. Trade Representative’s office were submitted to the White House weeks ago, but final deliberations within the administration have caused delays in the announcement, according to insider accounts.
Biden’s approach to tariffs aims to distinguish itself from that of former President Donald Trump, a Republican, who advocated for broad-based tariffs that administration officials deemed overly blunt and prone to fuel inflation. The White House and the U.S. Trade Representative’s office have refrained from commenting on the matter, with Bloomberg News initially breaking the story.
The proposed measures could potentially trigger retaliatory actions from China amid heightened tensions between the two largest economies globally. Biden has underscored his reluctance to engage in a trade war with China, acknowledging a new phase of competition between the nations. Both Biden and Trump have deviated significantly from the previous free-trade consensus in Washington, especially marked by China’s entry into the World Trade Organization in 2001.
In 2022, Biden initiated a review of Trump-era trade policies under Section 301 of U.S. trade law. Last month, he advocated for considerably higher tariffs on Chinese metal products, albeit with a narrower focus, estimated to cover more than $1 billion worth of steel and aluminum items. Additionally, Biden launched an investigation into Chinese trade practices across sectors such as shipbuilding, maritime, and logistics, potentially leading to further tariff implementations.
The Biden administration has also been exerting pressure on Mexico to prevent China from indirectly selling its metal products to the United States via Mexican channels. China has condemned these tariff measures, labeling them as counterproductive and detrimental to both the U.S. and global economies.