Biden escalates trade war with hefty tariffs on Chinese exports
Joe Biden announced drastic hikes in tariffs on many Chinese export products on Tuesday. The White House has decided to maintain the tariffs introduced during the previous administration and introduce new trade barriers. Among them is a fourfold higher tariff on electric vehicles.
The White House emphasized in a statement that Beijing's "unfair practices" pose an "unacceptable risk" to the USA's economic security. For a long time, China has been accused of flooding the global market with cheap goods.
The decisions announced on Tuesday concern imported goods from China valued at CAD 23 billion. The White House said they are semiconductors, batteries, electric vehicles, critically important minerals, solar panels, cranes, and steel and aluminium.
According to data collected by the US Census Bureau, in 2023, the United States imported goods from China valued at CAD 548 billion and exported products worth CAD 190 billion. This trade deficit, which has persisted for decades, is becoming an increasingly sensitive issue in Washington, the Reuters agency emphasized.
Serious accusations
- China’s using the same playbook it has before to power its own growth at the expense of others by continuing to invest despite excess Chinese capacity and flooding global markets with exports that are underpriced due to unfair practices - said Lael Brainard, an economic advisor to the White House.
In turn, the US trade representative, Katherine Tai, stated that the increase in tariffs is justified because China continues to steal American intellectual property. In some cases, they have become more aggressive, committing, for example, cyber break-ins aimed at copying American technology.
In response to the announcement of drastic tariff increases, the Ministry of Commerce in Beijing announced that China will take decisive steps to defend its rights and interests. They also call on the USA to withdraw from the decision to raise the fees.
