Biden imposes ‘strategic and targeted’ tariffs on Chinese electric vehicles and batteries

President Biden on Tuesday criticized Donald Trump’s record on trade policy by imposing full 100% tariffs on electric vehicles made in China and imposing or increasing tariffs on a wide range of products manufactured in China in an effort to prevent them from flooding American markets. .

Speaking in the White House Rose Garden as light rain began to fall, Mr. Biden said the actions he was announcing were intended to ensure that “American workers and American businesses… can compete and win in the industries of the future” because Americans “can outsmart and outperform anyone as long as the competition is fair.”

According to him, Chinese state-owned competitors have long profited from the Chinese government’s unfair trade practices.

“For years, the Chinese government has pumped public money into Chinese companies across a range of sectors: steel, aluminum, semiconductors, electric vehicles, solar panels… and even essential health equipment like gloves and masks,” he said.

The Chinese government’s heavy subsidies to these state-owned enterprises allow them to “produce far more than the rest of the world can absorb”, he added, with the end result of “throwing surplus products on the market at unfairly low prices” and “driving other manufacturers around the world into bankruptcy.”

The president recalled how the advent of cheap Chinese steel devastated cities in Pennsylvania and Ohio in the early 2000s, costing thousands of workers their jobs.

“I’m not going to let this happen again.” “That’s why I’m announcing new tariffs today in key sectors of the economy to ensure our workers are not held back by unfair trade practices,” he said.

Specifically, Mr. Biden said he was authorizing 25% tariffs on Chinese-made steel and aluminum, intended to directly counter “Chinese overcapacity” in both sectors, in tandem with 1, $5 billion in investments his administration has made to support the construction of new environmentally friendly projects. environmentally friendly steel and aluminum facilities here in the United States.

He also said he was imposing a 100% tariff on Chinese-made electric vehicles in a bid to ensure US dominance in the sector.

Mr. Biden also announced a 25% tariff on electric vehicle batteries made in China and a duty of the same percentage on “critical minerals” of Chinese origin used to make these batteries.

“I am determined that the future of electric vehicles will be built in America by union workers, period. And we will do so while respecting international trade laws,” he said.

The president added that the United States and other U.S. allies are seriously investing in electric vehicle infrastructure, such as charging stations, and that all parties involved want an electric vehicle supply chain “that does not is not dominated by China’s unfair trade practices.

“Americans can continue to buy any type of car they want, whether gas, electric or hybrid. But we will never allow China to unfairly control the market for these cars,” he said.

Mr. Biden’s adoption of the tariffs marks a return to Democratic trade policy from a bygone era, when most Republicans favored free trade. let it happen policies put in place since the 1990s.

U.S. Trade Representative Katherine Tai told reporters at a daily White House briefing that the announcement was “an important part of President Biden’s worker-centered trade policy, which is to use the trade to empower workers and ensure they can compete fairly.” and thrive and supports the historic investments we have already made here at home.”

She also denied that the new tariffs were aimed at curbing China’s economic development and said they were instead intended to show that the administration would “insist on fair competition and defend American workers against unfair labor practices.” RPC”.

The new emphasis on tariffs is bipartisan, with Mr Biden and Mr Trump – his predecessor and likely opponent in the 2024 general election – employing them in their arsenal of tools against China.

The twice-impeached and four-times indicted ex-president did impose tariffs on Chinese goods, but he often lies about their effects by claiming that they prompted the United States to “ take “money” from China – meaning the Chinese government was paying for the privilege of access to the US market. In reality, tariffs are import taxes that are often passed on to U.S. consumers.

Mr Biden said his approach was “strategic and targeted” and called it a “smart approach” compared to Mr Trump, who he said had “failed” in his fight against Chinese trade aggression .

“My predecessor promised to increase U.S. exports and boost manufacturing, but he got nothing,” he said. “He signed a trade deal with China – they were supposed to buy another $200 billion worth of American goods.”

But the trade deficit with China “barely budged” under Mr. Trump, he added, before pointing out that the deficit had been reduced to its lowest level in years under his own administration.

“We have the best economy in the world. And since I have been in office, GDP has increased, our trade deficit with China has fallen to its lowest level in over a decade, and we are standing up against the unfair economic practices of the Chinese government,” he said. he declares.

Asked about Mr. Trump’s recent comment that China was “eating our lunch” under his administration, Mr. Biden replied: “He’s been feeding them for a long time.” »

In a statement, Trump campaign press secretary Karoline Leavitt called the new announcement “a weak and futile attempt to distract from the serious harm his senseless electric vehicle mandate is doing to the U.S. auto industry.” and how his radical policies are wiping out thousands of American automakers. jobs.”

She also said the focus on electric vehicles made in China showed the tariffs had “nothing to do with protecting American workers.”