US raises tariffs on Chinese electric vehicles and semiconductors

According to CNN, the US government announced that it will increase taxes on electric vehicles and some other Chinese products from September 27, in order to protect domestic workers from competitive pressure in these industries.

Specifically, tariffs on Chinese electric vehicles will quadruple to 100%, while tariffs on lithium-ion batteries will increase from 7.5% to 25%. Tariffs on steel and aluminum products will also increase from 0% to 7.5% on September 27. Tariffs on semiconductors will double to 50% from January 1, 2025.

US Trade Representative Katherine Tai said the tariffs reflect President Joe Biden and Vice President Kamala Harris' commitment to standing up for American workers and businesses.

The Biden administration announced the tariffs in May with the intention of implementing them on August 1. However, the decision was delayed after the Office of the US Trade Representative said that the review and public comment process would take longer than expected.

The high tariffs are expected to make products made in China more expensive. The US has repeatedly labeled China a top “competitor” and has tightened economic restrictions on the country since 2018. Beijing, meanwhile, says Washington’s actions violate global trade rules.

SOUTH