U.S. Trade Relations with China: A Biden Administration Approach to Bringing Down the Most Improper Trade Regulations on Imported Goods
Biden administration has sought to have made investments in America through the Inflation Reduction Act, the CHIPS and Science Act and the Bipartisan Infrastructure Law, which are covered by most of the new tariffs.
Many other countries share her concerns about cheap Chinese imports, she said in a statement. She said the new tariffs are necessary to protect American workers and companies from what could become a flood of unfairly traded products.
Biden is pushing to push through three pieces of legislation that contains hundreds of billion of dollars of subsidies to boost the domestic manufacturing and clean energy sectors as trade and jobs will once again be an issue in the presidential election.
Lael Brainard said that China’s unfair practices have hurt communities in Michigan and Pennsylvania and that President Biden’s investment agenda has made it possible for them to come back.
One of the challenges when it comes to reducing tariffs is that affected industries tend to get used to them, so reducing them can be hard. Michael Froman was the U.S. trade representative during that time.
The White House has tried to distinguish its strategy from Trump’s approach. It points out that Trump said in interviews and rallies that he would increase tariffs on all imported goods, including targeting Chinese cars, if he was elected president, something that they said would hike consumer prices.
The White House has downplayed the risk that the new tariffs could spark retaliation from China, saying that the issues have been discussed during meetings of top U.S. and Chinese officials, and were unlikely to come as a surprise.
It’s the latest move the US has taken amid efforts to ramp up domestic manufacturing while escalating trade tensions with China. The increased tariffs will affect around $18 billion in annual imports.
When it comes to EVs, the Biden administration is doubling down on tactics to lock Chinese manufacturers out of the US. The BYD Seagull is Chinese made and it is less expensive than the cheapest model of the company. But high tariffs have effectively blocked China from importing its EVs to the United States. The rate will rise to 100 percent from 25 percent.
Over the next couple of years, the tariffs on permanent magnets, natural graphite, and other critical minerals are going to rise. It is used in steelmaking and solar panels. Certain steel and aluminum products will see tariffs rise to 25 percent from today’s zero to 7.5 percent.
Meanwhile, US-based solar manufacturers are celebrating the decision to raise tariffs on solar cells to 50 percent from the previous 25 percent. “The Administration made the right decision to strengthen protections for solar components we seek to build in the U.S.,” Mike Carr, executive director of the Solar Energy Manufacturers for America Coalition, said in an emailed petition.
The US already blocks solar imports from China’s Xinjiang region, where roughly 40 percent of solar-grade polysilicon manufacturing takes place, over concerns about forced labor and human rights violations along the supply chain.