The US raises tariffs on Chinese goods and brings them to 100% on electric vehicles

The president of United States, Joe Bidenannounced this Tuesday new tariffs worth US$ 18,000 million on imports of products from China, of which the most punished are electric vehicles with taxes that go from 25% to 100%.

The new tariffs affect sectors described by the White House as “vital to the economic future and national security of the United States”, such as steel, aluminum, semiconductors, electric vehicles, batteries, solar panels, ship unloading cranes and medical products.

The announcement comes in the middle of the campaign for the November 5 elections and at a time when Bidenwho is seeking re-election, has adopted an increasingly harsh tone with China despite having opened a dialogue with Beijing, in an attempt to win over the working class of the United States and distance it from former President Donald Trump (2017-2021), future republican candidate.

Some of the tariffs announced by the White House in a statement would come into force in 2025 or 2026, so their implementation will actually depend on who wins the elections.

100% in electric vehicles

The most forceful tariff affects electric vehicles and will go from 25% to 100% this year.

This enormous increase responds to the substantial increase in exports of electric vehicles from China to USAwhich grew by 70% between 2022 and 2023, something that Washington perceives as a threat to the development of the domestic market for these cars.

Biden It wants up to two-thirds of new cars sold in the United States to be electric by 2032 and, to this end, it has promoted different programs to encourage its production.

Another significant tariff increase falls on batteries used in electric vehicles, a market that China controls 80% thanks to its dominance in the mining, processing and refining of critical minerals.

Specifically, according to the White House, tariffs on lithium-ion batteries will rise from 7.5% to 25% this year, while the tariff on lithium-ion batteries not intended for electric vehicles will increase from 7.5% to 25%. in 2026.

The tariff on battery parts will rise from 7.5% to 25% this year, and that on natural graphite and permanent magnets will rise from 0% to 25% in 2026. Finally, the tariff on other critical minerals will rise from 0% to 25%. % in 2024.

Solar panels, semiconductors, cranes and medical products

In the area of ​​clean energy, tariffs on solar panels will also increase, which will go from 25% to 50% this year.

Semiconductors will suffer the same increase, although in that case the increase will take place in 2025.

This increase aims to boost the national production of semiconductors, backed by an investment of US$ 53,000 million that Congress approved in 2022 and that seeks to avoid the price increases that were experienced during the pandemic in sectors such as the automobile and transportation sectors. home appliances.

The White House also announced tariffs on ship unloading cranes, which will go from 0% to 25% this year, and on medical products.

In the latter case, taxes on syringes and needles will rise from 0% to 50% in 2024, while tariffs will rise from 0 or 7.5% to 25% for personal protection products such as respirators and masks. In addition, rubber medical and surgical gloves will see their tariffs increased from 7.5% to 25% in 2026.

In its statement, the White House attempted to draw a distinction between these levies, specifically targeting sectors in which Biden has invested, and the “indiscriminate tariffs” which, in his opinion, Trump imposed when he was president.

During his time in office, Trump imposed tariffs on hundreds of billions of Chinese goods, to which Beijing responded with more tariffs, triggering a trade war that had negative consequences for global growth.