US President Joe Biden wants to raise tariffs on Chinese imports. A steep tariff increase on Chinese imports will occur in the following months. It will include items mainly focusing on electric vehicles. Donald Trump’s trade policy started a trade war between China and the US a few years ago. Joe Biden mentioned that the American workers are not getting a fair competition. Thus, several items from Chinese exports are being targeted. This new tariff will be put into action soon. Therefore, the tariff on such items will be high in the coming years.
US President Joe Biden is looking for fair competition as he does not want Chinese imports to dominate the American market. Thus, tariff hikes are soon going to give us another shocker. The American government will almost double the tariffs by next year. The move can impact several other aspects of the US economy as well. Things considered under the tariff hikes include Electric Vehicles, Lithium-ion Batteries, and photovoltaic cells. Apart from the manufacturing, the tariff hikes will also cover the medical line’s surgical gloves, needles, and PPE.
Joe Biden is focused on increasing the exports from the country as we all know that more exports will create more employment opportunities. Thus, the economy will strengthen. However, depending on other countries can lead to a huge loss for the country. America is the strongest and most developed economy at present. China is the second most powerful economy. The trade war between the two superpowers is changing a lot of dynamics. Thus, it will lead to electric vehicles becoming costly in the US. It will shift more people towards fuel-based cars, leading to fewer people adopting EVs. Thus, it can also have environmental consequences.
The tariff will be making the following changes in the imports of the products below:
- EV: from 25% to 100%
- Lithium-ion EV Batteries and other battery parts: from 7.5% to 25%
- Photovoltaic Cells: from 25% to 50%
- Ship-to-shoe cranes: from 0% to 25%
- Syringes and Needles: from 0% to 25%
Other essential products affected by the tariff hikes will be semiconductors. Thus, the solar, electric, and medical industries can witness some cost changes in the next year. The current year will also witness changes in the price of steel and aluminum products after the implementation of the previous tariff announcement. It is yet to be hard to say whether the changes will positively or negatively impact the economy.
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