Biden Administration to Impose New Tariffs on Chinese Goods

The Biden administration is set to announce new tariffs on Chinese-made goods, including medical devices, electric vehicles, and solar equipment. The tariffs target strategic sectors deemed critical to US national security and competitiveness, aiming to protect domestic manufacturing and reduce reliance on China.

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Nitish Verma
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Biden Administration to Impose New Tariffs on Chinese Goods

Biden Administration to Impose New Tariffs on Chinese Goods

The Biden administration is set to announce new tariffs on a range of Chinese-made goods, including medical devices, electric vehicles, semiconductors, and solar equipment, as part of its revised trade strategy. The announcement is expected as early as next Tuesday.

Why this matters: The imposition of new tariffs on Chinese goods has significant implications for the global economy and trade relations between the US and China. It may also have a ripple effect on other countries that rely on trade with these two economic powerhouses.

The new tariffs will target strategic sectors deemed critical to U.S. national security and competitiveness. Chinese-made medical supplies, such as syringes and personal protective equipment, will face additional levies. Tariffs on electric vehicles imported from China will roughly quadruple, according to the Wall Street Journal.

The move comes as the Biden administration has been reviewing the Trump-era trade policy under Section 301 of the U.S. trade law since 2022. Theforthcoming tariffswill maintain many of the existing levies on Chinese goods set by former President Donald Trump, which currently cover about $360 billion worth of imports.

Lawmakers have called for significant increases on Chinese vehicle tariffs, citing concerns over national security and the competitiveness of the U.S. auto industry. Senate Banking Committee Chairman Sherrod Brown has urged the Biden administration to ban Chinese electric vehicles outright, warning of risks to Americans' personal data.

The U.S. Trade Representative's office made its recommendations to the White House weeks ago, but a final announcement has been delayed due to internal discussions. The new tariffs are seen as a response to China's manufacturing overcapacity in industries like electric vehicles, which poses a threat to U.S. jobs and technological leadership.

The Biden administration's trade strategy aims to protect critical U.S. supply chains and industries from Chinese competition. By imposing higher tariffs on targeted sectors, the White House seeks to bolster domestic manufacturing and reduce reliance on China for key goods. The new levies on medical devices and clean energy products reflect the administration's priorities in public health and combating climate change.