President Joe Biden is set to announce new tariffs on Chinese electric vehicles, semiconductors, batteries, solar cells, steel, and aluminum. The tariffs on Chinese EVs will increase to 100%, quadrupling the current rate of 25%. This move is aimed at preventing China from undermining U.S. companies and potentially jeopardizing American manufacturing jobs. Although Chinese EVs do not make up a significant portion of the EV market in the U.S., China’s overall exports have been on the rise, increasing by 50% over the past two years. Chinese EVs are more affordable than those made by American automakers and have been receiving positive reviews, adding pressure on U.S. manufacturers.
One example is BYD, the world’s largest EV manufacturer, which recently introduced the Seagull electric car. The Associated Press has described the Seagull as driving well and being crafted with quality that rivals much more expensive U.S.-made electric vehicles. Priced at around $12,000 in China, with a cheaper version under $10,000, the Seagull could potentially disrupt the U.S. market if not regulated. The increased tariff on Chinese EVs could help alleviate some pressure on American automakers and the United Auto Workers, who endorsed Biden’s reelection bid later than in 2020. The union was concerned about the potential impact of the president’s push for transitioning the economy to EVs on their workers, but Biden reassured them that U.S. auto workers would not be left behind.
Biden has emphasized the importance of retaining jobs and preventing China from dominating the EV market. He criticized the previous administration for allowing China to take over jobs in this sector and pledged to support companies in transitioning to new technologies while ensuring that existing union workers have priority for new jobs. This approach aligns with his broader economic and job creation goals, emphasizing the need to retool, reboot, and rehire workers in a way that maintains wages and supports local communities. By implementing tariffs on Chinese EVs and other products, Biden aims to level the playing field and protect American industries from unfair competition.
Nancy Cordes, CBS News’ chief White House correspondent, has noted the significance of Biden’s efforts to address China’s increasing dominance in the global EV market. By imposing tariffs on Chinese products, particularly EVs, Biden is sending a strong message that the U.S. will not stand by while China gains an advantage in key industries. Cordes highlights the awards that Biden has received for his leadership in this area, including Emmys, Edward R. Murrow awards, and an Alfred I. duPont-Columbia University Award. Biden’s actions reflect his commitment to protecting American jobs, promoting economic growth, and ensuring a level playing field for U.S. companies in the global market.
