Biden administration is reportedly set to announce new tariffs on China, with a particular focus on strategic sectors including electric vehicles (EVs).
What Happened: The new tariffs, which are anticipated to be unveiled as early as next week, will be aimed at key strategic sectors, including electric vehicles, batteries, and solar cells, Bloomberg reported, citing people familiar with the matter.
The existing tariffs are likely to be maintained, with an official announcement scheduled for Tuesday, two of the sources told the news platform. However, there is also a chance of delay, the report added.
The new tariffs are the result of the years-long review of the tariffs deployed during Trump’s presidency. The tariffs then triggered a trade war between the U.S. and China after the East Asian country hit back with measures impacting agricultural exports.
Biden is seeking re-election in November. He is looking to seem tough on China while simultaneously trying to contrast his approach. Trump, meanwhile, has promised a 60% tax on all Chinese imports if elected to power.
Why It Matters: The U.S. government has been increasingly wary of China's influence in the automotive industry. In February, the White House said that the U.S. has initiated an investigation into connected vehicles with technology from "countries of concern," including China, due to national security concerns.
“China is determined to dominate the future of the auto market, including by using unfair practices. China's policies could flood our market with its vehicles, posing risks to our national security,” Biden then said. “I'm not going to let that happen on my watch.”
Chinese automakers presently do not have a significant market in the U.S., partly due to the high tariffs imposed on vehicle imports from China. Chinese solar companies, meanwhile, export to the U.S. from third countries, implying that the new tariffs won’t have an immediate impact.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read More: You Can Now Save $1,000 On Your 7-Seat Tesla Model Y, But There’s A Small Catch
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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