President Biden is expected to announce today a quadrupling of tariffs on electric vehicles from China, raising them from around 25% to 100%. He’s also expected to increase tariffs on other industries, including semiconductors, solar and batteries.
The goal of the tariff increase to stop vehicles manufactured in China from flooding the U.S. market. The decision came after years-long review of Trump-era tariffs, most of which will remain in place.
The tariff increases are also a reflection on how Biden is trying to fortify his image as being smarter and tougher on China than Trump. Over the weekend, the former president mocked Biden’s plan at a New Jersey rally, saying the president should have done this years ago.
Some economists are concerns that raising tariffs will put further stress on tensions with China, potentially worsening inflation as it increases the costs to consumers. Additionally, one economist, Ian Bremmer of Eurasia Group, said that because Chinese vehicles are “far better on the EV side,” the action could be a problem for Biden’s climate agenda.
