President Joe Biden’s administration is rushing to implement new tariffs on China as the 2024 election draws near. These tariffs will target specific strategic sectors such as electric vehicles, batteries, and solar cells, but are not expected to significantly impact the overall U.S. trade deficit with China.
According to reports from Bloomberg News and The Wall Street Journal, the Biden administration plans to announce these new tariffs soon, with a focus on quadrupling duties on electric vehicles. This decision marks a departure from Biden’s earlier criticism of former President Trump’s trade policies towards China.
Despite initially suggesting a repeal of some of Trump’s tariffs on Chinese exports, the Biden administration has faced challenges in appeasing both domestic economic nationalism and pressure from China and corporate America. U.S. Trade Representative Katherine Tai has played a key role in advocating for the maintenance of tariffs on China amid internal debates within the White House.
Political motivations are driving the decision to increase tariffs on green tech imports like electric vehicles, as seen in Biden’s proposal to raise tariffs on Chinese steel and recent calls from Senate Democrats. However, these strategic tariffs may not have a long-lasting impact if Biden secures a second term, potentially leading to a shift in trade policy.
Experts warn that these targeted tariffs may not effectively address the overall trade imbalance between the U.S. and China, as China’s economic policies are unlikely to change significantly. Additionally, the tariffs may result in shifts in export patterns that could negatively impact other sectors of the U.S. economy.
In conclusion, the new tariffs on China may have limited effectiveness in reducing the trade deficit and could potentially harm other industries. Addressing the larger issues of trade imbalances and China’s trade practices may require a more comprehensive approach beyond targeted tariffs.
