In a stern rebuke, China’s commerce ministry on Saturday denounced the US decision to significantly increase tariffs on Chinese imports, including a 100% duty on electric vehicles. The ministry urged the Biden administration to immediately reverse this action, calling it a ‘wrongdoing’ and demanding the removal of all tariffs imposed on Chinese goods. This strong condemnation follows the US confirmation of hefty tariff hikes on Friday, implemented as a measure to protect its strategic industries and counter China’s state-driven industrial policies.
The US Trade Representative’s office announced that the new tariffs, including the 100% duty on Chinese EVs, 50% on solar cells, and 25% on steel, aluminum, EV batteries, and key minerals, will take effect on September 27th. Notably, the Biden administration has retained the Trump-era tariffs on over $300 billion worth of Chinese goods, ranging from consumer products like toys and t-shirts to industrial machinery and internet routers. The tariffs on these goods currently range from 7.5% to 25%.
The final decision disregarded pleas from automakers who sought lower tariffs on graphite and other critical minerals essential for EV battery production, highlighting the industry’s dependence on Chinese supplies. The tariff hikes have drawn criticism from various sectors, raising concerns about potential disruptions to supply chains, particularly for semiconductor-intensive products.
Many industry players argue that the tariff increases may not effectively deter China’s technology transfer and industry dominance practices, which have led to an oversupply of goods flooding global markets. The latest developments have fueled anxieties about escalating trade tensions between the US and China, two of the world’s leading economies.
