Biden is unleashing a series of new tariffs against China. They will be targeting steel, aluminum, electric vehicles, and solar power. This means that American companies will be better able to compete with cheap Chinese imports that do not turn a profit.
I just imposed a series of tariffs on goods made in China:
— President Biden (@POTUS) May 14, 2024
25% on steel and aluminum,
50% on semiconductors,
100% on EVs,
And 50% on solar panels.
China is determined to dominate these industries.
I'm determined to ensure America leads the world in them.
The downside, of course, is that the American consumer will pay more for these products whether in America or China. Because Chinese goods will be more expensive, American manufacturers will not have an incentive to lower their prices. The AP says:
President Joe Biden slapped major new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment on Tuesday, taking potshots at Donald Trump along the way as he embraced a strategy that’s increasing friction between the world’s two largest economies.
The Democratic president said that Chinese government subsidies ensure the nation’s companies don’t have to turn a profit, giving them an unfair advantage in global trade.
At a time when inflation is skyrocketing, these tariffs on basic manufacturing goods will continue to make everything more expensive. The Biden Administration continues to prioritize electric vehicles, despite their lackluster performances against gas powered ones. The Hill explains:
When it comes to China, President Biden is taking a series of actions to explicitly contrast his trade and climate policies from those of his predecessor, Donald Trump, in the razor-tight 2024 election campaign. If successful, Biden’s actions can effectively neutralize Trump’s arguments on China and trade in key industrial swing states like Michigan, Pennsylvania and Wisconsin. And Biden will also increase his advantage on the climate issue, which is important to young voters and progressives.
First, Biden is confronting China over its still-growing carbon dioxide emissions that are now nearly one-third of the global total, more than every developed country in the world combined. (U.S. emissions are a distant second, at about 13 percent.) Biden is driving home the key point to climate-focused voters that he can force China to reduce its greenhouse gas output, without which global emissions cannot possibly be cut to levels scientists find are needed to prevent climate catastrophe.
While there is a solid reasoning for protecting domestic industries, Biden is not creating a climate of entrepreneurship and industrial renewal. Rather than focusing on Chinese geopolitical ambitions, Biden is solely focused on their pollution.
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