Biden said the measure would ensure American workers are not harmed by unfair trade practices.
Washington:
US President Joe Biden has imposed heavy tariffs on Chinese electric vehicles, batteries, steel, solar cells and aluminum, saying this would ensure American workers are not harmed by unfair trade practices.
These include a 100 percent tariff on electric vehicles, a 50 percent tariff on semiconductors and a 25 percent tariff each on China’s electric vehicle batteries.
In his address to the nation from the White House Rose Garden, Biden said America can continue to buy any kind of car it wants, “but we will never allow China to unfairly control the market for these cars. Period.” “I want fair competition with China, not conflict. We are in a stronger position than anyone else to win the 21st century economic competition against China because we are investing again in America,” he said.
Biden alleged that for years, the Chinese government poured state money into Chinese companies across a wide range of industries: steel and aluminum, semiconductors, electric vehicles, solar panels and even critical health equipment such as gloves and masks.
China heavily subsidized all of these products, forcing Chinese companies to produce far more than the rest of the world could absorb. Then dump surplus products onto the market at unfairly low prices, bankrupting other manufacturers around the world, he said.
Prices are unfairly low because Chinese companies don’t need to worry about profit because the Chinese government has subsidized and heavily subsidized them. The Chinese also resort to other anti-competitive tactics, such as forcing American companies to transfer their technology to do business in China, he said.
Biden said the new tariffs he announced on key sectors of the economy will ensure that American workers are not harmed by unfair trade practices.
American companies, he said, are investing tens of billions of dollars in electric vehicles and their batteries. “Our partners around the world are making similar investments. They also want an electric vehicle supply chain that is not dominated by China’s unfair trade practices,” he said.
Biden also criticized his predecessor, Donald Trump, for his China policy.
“My predecessor promised to increase American exports and boost production. But neither does he. He failed. He signed a trade agreement with China. They should buy another 200 billion dollars in American products. Instead, China’s imports from America have barely declined,” he claimed.
“And now, Trump and his MAGA Republicans want across-the-board tariffs on all imports from all countries if they are re-elected. Well, that would increase costs for families by an average of $1,500 a year, every year. He just doesn’t understand,” he said.
At a White House press conference, U.S. Trade Representative Katherine Tie said the previous administration’s trade deal with China failed to increase American exports or boost production. In fact, China’s exports in some critical sectors such as electric vehicles and batteries have increased, Tie said.
“In response, President Biden signed a memorandum directing me to increase tariffs on critical manufacturing and mining sectors, including steel and aluminum, semiconductors, electric vehicles, batteries, solar cells and certain critical minerals,” she said.
The tariff increase is expected to cover approximately $18 billion of trade. The president also directed a process to request the exclusion of certain production machines from tariffs to allow solar and clean energy manufacturers to purchase equipment while diversifying their suppliers.
Next week, it expects to publish a notice that conveys the specific tariff lines, tariff rates and deadlines for the proposed increases, along with details of the machine exclusions process.
“This strong action by the president is strategic. As he said, we do not intend to restrict China’s economic development, but we will insist on fair competition and defend American workers from the PRC’s unfair practices.
The president’s current guidance defends American workers and businesses from the PRC’s artificially cheap products, whether electric vehicles or steel or critical minerals or semiconductors,” Tie said.
She also emphasized that the US continues to consult with its partners and allies who face similar threats from Chinese unfair trade practices and is also expressing its concern about these unfair practices and taking action.
(Except the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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