President Biden announced new tariffs on Chinese goods, escalating the trade war initiated by former President Trump while trying to improve his standing on economic issues. The tariffs will impact imports totaling around $18 billion per year, including metals, green energy technologies, semiconductors, construction equipment, and medical products. Electric vehicles will face a 100% tariff, solar panel parts will have a 50% tariff, and other goods will be levied at 25%. Chief White House economist Lael Brainard highlighted China’s actions in fueling its own growth at the expense of other nations as justification for the tariffs, which will be formalized in a speech by President Biden.
Former President Trump has vowed to raise tariffs even higher on Chinese products, proposing a 200% levy on electric vehicles to maintain a domestic advantage. Trump had previously imposed tariffs on Chinese goods starting in 2018 in an attempt to renegotiate trade agreements that would benefit US companies. While there were concerns about increased costs for US consumers, both parties have since supported the tariffs. President Biden, who has preserved Trump’s tariffs, recently announced an additional 15% tariff on Chinese steel and aluminum. Trump had initially imposed a 25% tariff on steel and a 10% tariff on aluminum, with further tariffs of 7.5% to 25% on Chinese goods amounting to $362 billion annually.
Following a “Phase One” agreement on trade reforms in January 2020, negotiations between Washington and Beijing were disrupted by the COVID-19 pandemic. President Biden’s announcement of new tariffs comes as the economy remains a top concern for voters, with polls indicating more confidence in Trump’s ability to manage the economy compared to Biden. Critics argue that Biden has been too lenient towards the Chinese government on various issues, including the origins of COVID-19 and the opioid crisis. Congressional Republicans have launched an impeachment inquiry into alleged corruption involving the Biden family’s dealings with Chinese government-controlled businesses.
The ongoing trade tensions between the US and China have been a key focus for both Biden and Trump as they seek to position themselves favorably on economic issues ahead of the next presidential election. While both administrations have resorted to tariffs on Chinese goods, there are concerns about the impact on US consumers and businesses. The tariffs imposed by Trump and continued by Biden have been part of efforts to address China’s unfair trade practices and protect US industries. As the trade war continues, the consequences for both countries’ economies and the global market remain uncertain.
Despite the tariffs and trade disputes, cooperation between the US and China remains essential for global economic stability. The Biden administration’s approach to China, while taking a tougher stance on certain issues, also emphasizes the need for dialogue and collaboration on common challenges such as climate change and global health. Finding a balance between challenging China’s practices and engaging in productive partnerships will be crucial for the US in the coming years. As the world’s two largest economies, the US and China play a significant role in shaping global trade, investment, and diplomatic relations, making it imperative for both countries to find ways to manage their differences and work towards mutually beneficial solutions.
