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Biden Raises Tariffs on Key Chinese Imports to Bolster U.S. Industries
KEY POINTS
- • Tariffs on Chinese imports aim to counter China's control over global production and protect U.S. economic security.
The Biden administration is raising tariffs on Chinese imports, including EVs, batteries, and semiconductors, to boost U.S. manufacturing and supply chain control.
The Biden administration announced a significant increase in tariffs on critical Chinese imports, including electric vehicles (EVs), batteries, semiconductors, and other advanced technologies. This move aligns with U.S. efforts to strengthen its position in clean energy and advanced technology manufacturing while enhancing control over supply chains.
On Tuesday, United States Trade Representative Katherine Tai revealed that existing Section 301 tariffs on Chinese goods would remain, with additional increases in strategic sectors. The tariffs, covering $18 billion worth of imports in clean energy and technology, are intended to protect U.S. manufacturers from China’s trade practices.
“China’s forced technology transfers and intellectual property theft have contributed to its control of 70-90% of global production for critical inputs necessary for our technologies, infrastructure, energy, and healthcare—creating unacceptable risks to America’s supply chains and economic security,” the White House stated.
Key Tariff Increases
Medical Products: Tariffs on surgical masks and certain other personal protective equipment were raised to 25% in 2024, on syringes and needles to 50% in 2024, and on medical gloves to 25% in 2026.
Electric Vehicles: The tariff on Chinese-produced EVs will rise from 25% to 100% this year. This is aimed at countering a 70% increase in Chinese EV exports to the U.S. from 2022 to 2023.
Semiconductors and Solar Cells: Tariffs on semiconductors and solar cells will double to 50% in 2024. This increase is designed to combat China’s growing market share and capacity expansion, which threatens U.S. investments in these critical sectors.
Critical Minerals: Recognizing China’s dominance in critical minerals, the administration will impose 25% tariffs on natural graphite and permanent magnets by 2026. Other critical mineral tariffs will reach 25% this year.
Batteries: Tariffs on lithium-ion EV batteries will rise to 25% in 2024, with similar increases for non-EV batteries and battery parts.
These tariffs, part of an $18 billion initiative, align with U.S. efforts to enhance clean energy and advanced technology manufacturing, supported by federal funding through the Inflation Reduction Act and other measures to strengthen domestic production and supply chain security.
For more information, see:
Bloomberg, US-China Trade Punches Thrown, May 16
Supply Chain Dive, Biden hikes tariffs on China-made EVs, batteries, semiconductors, May 14
Becker’s Hospital Review, US raises tariffs on medical supplies from China, May 14th
