US industry reacts to new tariffs on Chinese goods. (Source: Reuters)

The decision marks the end of a more than two-year review of tariffs imposed by former President Donald Trump.

Specifically, Beijing's tax on electric vehicles will quadruple to 100%, the tax on lithium-ion batteries will increase from 7.5% to 25%. The tax on aluminum and steel products will also increase from 0% to 25% on September 27.

In a statement on September 13, US Trade Representative Katherine Tai stated that the above tariff policy reflects the commitment of President Joe Biden and Vice President Kamala Harris to stand with workers and businesses of the world's largest economy.

Previously, in May 2024, President Joe Biden's administration announced these tariffs with the intention of applying them from August 1, 2024.

However, this decision was postponed because the Office of the US Trade Representative (USTR) said that research, evaluation and public comments took longer than expected.

In an interview with Reuters , Lael Brainard, the White House's top economic adviser, said the new tariff decision was made to ensure that the Washington electric vehicle industry is able to diversify and is not dependent on Beijing's dominant supply chain.

“Such a tough, targeted tariff policy is necessary,” Brainard said.

The decision immediately faced criticism from domestic US industries.

Some argue that the tariff hikes will disrupt supply chains, including those for semiconductor-intensive products, while doing little to stem technology transfers to China.

Jason Oxman, president of the American Information Technology Council, complained that since the implementation of harsh tax policies, the total damage suffered by American businesses and consumers is estimated to be up to 221 billion USD.

“Once again the White House is relying on crude and ineffective tariffs, without any necessary support for the domestic business community,” he said.

The White House's move to impose higher tariffs comes as the US election race enters its final stages.

Both presidential candidates, Vice President Kamala Harris and Donald Trump, are trying to attract voters in states considered "headquarters" of industrial activities, such as auto and steel manufacturing.