Biden Administration’s New China Tariffs To Include Electric Vehicles And Semiconductors

The Biden administration is set to announce new tariffs on electric vehicles, solar goods, critical minerals, and batteries from China as soon as next week. The announcement, expected on Tuesday, will also include new levies on semiconductors according to the Wall Street Journal.

Chinese electric vehicles currently face a 25% tariff, and the administration is expected to raise that as much as 100% to make it more expensive to buy the product from China. The new tariffs are not expected to include traditional gasoline-powered cars made in China.

The tariff update comes after lawmakers on Capitol Hill have called for hikes on Chinese vehicle tariffs. The Biden administration has considered adjusting the Trump-era tariffs, with some advisers calling for higher levies while Treasury Secretary Janet Yellen has made the case to lower duties on consumer goods.

In announcing the new round of tariffs, Biden is looking to demonstrate his push to safeguard manufacturing in the U.S. ahead of the November election. Biden has attempted to contrast his tariffs as “strategic and targeted” while claiming Trump’s tariffs have raised costs for U.S. consumers.

The trade moves are weighing on U.S.-China relations, and a spokesman for the Chinese Foreign Ministry slammed the Biden administration’s planned tariffs on Friday, saying existing tariffs have disrupted trade.