The Biden administration is actively discussing the prospect of hiking tariffs on specific Chinese goods, particularly electric vehicles (EVs), as part of an effort to fortify the American clean-energy sector against the competition of less expensive Chinese exports. Sources familiar with the matter revealed that officials within the administration, who have previously held differing views on trade policies, have maintained the tariffs imposed during the Trump era, amounting to around $300 billion on Chinese goods. However, discussions are underway at various government levels, including the White House, to reevaluate these tariffs, aiming to conclude a prolonged review possibly in the early months of the coming year.
Presently, Chinese EVs face a 25% tariff, a measure that has played a role in hindering subsidized Chinese car manufacturers from penetrating the U.S. market. Any increase in this tariff is anticipated to have minimal immediate impact on American consumers. Apart from EVs, other products under consideration for potential tariff hikes include Chinese solar goods and EV battery packs. Despite sourcing solar materials primarily from Southeast Asian nations at present, China remains a crucial supplier of EV batteries.
The adjustment of certain tariffs could serve as a means for President Biden to demonstrate a firm stance against China, especially with the approaching 2024 re-election campaign, where he might once again encounter Donald Trump.
Furthermore, the Biden administration is contemplating the reduction of tariffs on specific Chinese consumer products deemed less strategically vital, alongside the proposed tariff increases on clean-energy items, as per insiders familiar with the ongoing discussions.
Nevertheless, no final decisions have been made regarding the tariffs, as per these sources. Past internal talks concerning alterations to tariffs on Chinese imports had dissipated without any changes being implemented. Representatives for the Office of the U.S. Trade Representative and the National Security Council declined to provide comments on the matter.
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