US raises tax on Chinese electric cars to 100%

ReutersOn May 14, US President Joe Biden announced a package of strong tariff increases on a series of goods originating from China including electric vehicles, computer chips and medical products.

In a statement, the White House said Mr Biden would keep tariffs imposed by his predecessor Donald Trump in place while imposing others.

The reason given was the “unacceptable risks” to US “economic security” posed by what they saw as"unfair practices"China's cheap goods are flooding global markets.

Tariffs on electric vehicles will increase to 100% from 27.5%, while those on solar cells and semiconductors will increase to 50% from 25%. Tariffs on lithium-ion car batteries and battery components will increase to 25%. Tariffs on some critical minerals will also increase from 0% to 25%.

The White House said the new measures affect $18 billion in related Chinese imports.

According to the US Census Bureau, the country imported $427 billion in goods from China in 2023 while exporting only $148 billion to the world's second-largest economy.

Before the May 14 announcement, some of President Biden's economic officials also expressed concerns about excess manufacturing capacity in China and the potential for a flood of Chinese goods into the U.S. market.

China has rejected accusations that it is exporting excess industrial capacity, calling suspicions in the West an "excuse to pursue trade protectionism".

On the same day, following the White House statement, Chinese Foreign Ministry spokesman Wang Wenbin said Beijing "always opposes unilateral tariff increases that violate World Trade Organization (WTO) regulations and will take all necessary measures to protect its legitimate rights and interests."