What products from China will have increased tariffs? Biden announces higher taxes on Chinese goods
President Joe Biden announced on Tuesday that the US is “not going to let China flood our market” with cheap imports setting steep tariffs on several goods.
Speaking from the Rose Garden on Tuesday President Joe Biden announced sharp tariff increases on a range of Chinese imports in key sectors. He says that move by his administration is to stand up “against Chinese government unfair economic practices.”
“We’re not going to let China flood our market,” Biden explained saying that Beijing is subsidizing its manufacturers’ excess capacity which is then dumped on the world market. “I want fair competition with China, not conflict.”
Higher taxes on Chinese goods: What products will have increased tariffs?
The increased tariffs are being applied under Section 301 of the Trade Act of 1974 and will affect $18 billion of imports from China according to the White House fact sheet. They will target areas that have been singled out for major government and private investments through legislation passed during Biden’s first term in office.
Through the CHIPS and Science Act, the Biden administration is incentivizing manufacturers to bring semiconductor production back to the US. To prevent low-cost Chinese imports derailing those plans, the tariff on computer chips will double to 50% by 2025.
In order to protect American auto manufacturers as they ramp up domestic electric vehicle (EV) production, Biden is jacking up the tariff on Chinese EVs from 25% to 100% this year. Additionally, the import taxes on EV and non-EV lithium-ion batteries will jump from 7.5% to 25%, effective in 2024 and 2026 respectively.
The same 7.5% to 25% increase will apply to battery parts in 2024 while certain other critical minerals for their production will jump to 25% from zero. In 2026 natural graphite and permanent magnets will go from zero to 25%.
Also as part of the White House’s push to build green industries the Inflation Reduction Act is providing tax incentives to increase solar cell manufacturing and installation. Through a doubling of the tariff on solar cells, whether assembled into modules or not, to 50% this year Biden hopes to break China’s domination of the global solar supply chain.
The president as well announced new tariffs that will be placed on medical products to take effect this year. Import duties on certain personal protective equipment (PPE) will jump to 25%. Additionally, syringes and needles will increase to 50% from zero. In 2026, tariffs on rubber medical and surgical gloves will quadruple to 25%.
The White House is also raising the current tariff of between zero and 7.5% on certain steel and aluminum products to 25% in 2024. The move is designed to shield domestic producers that are using clean technologies from being undercut by artificially low-priced Chinese alternatives produced with higher emissions.
To mitigate the risks that could disrupt US supply chains while rebuilding American industrial capacity Biden announced that ship-to-shore cranes from China will now face a 25% tariff which currently don’t face an import duty.