President Joe Biden defended the recent increase in tariffs on Chinese electric vehicles (EVs) and other products at an event with union workers in the Rose Garden on May 14. He cited unfair trade practices employed by China, such as heavy subsidies from the China Communist Party (CCP), technology transfer requirements for American businesses operating in China, and cyber espionage that has led to economic damage in America.
The president announced a 100 percent tariff on Chinese EVs, a 25 percent tariff on electric vehicle batteries and critical minerals, a 50 percent tariff on Chinese semiconductors, and a 25 percent tariff on steel and aluminum from China. These measures aim to create fair competition with China, not conflict, as America is rising and has the best economy in the world under Biden’s administration.
According to White House officials, $18 billion worth of annual Chinese imports will be affected by the tariff hikes, while existing tariffs levied against about $300 billion of annual goods from China during the Trump administration will remain in effect if they do not increase. The Biden administration plans to invest $1.5 billion into six “clean steel” projects across the country and create 500,000 EV charging stations under his Bipartisan Infrastructure Law.
U.S. Trade Representative Katherine Tai emphasized that the new tariffs are not meant for escalation but rather to protect American rights. She explained that while both the U.S. and China heavily subsidize their EV industries, Chinese subsidies aim at cornering the market and achieving dominance, while the U.S. support is defensive in nature, creating space for competition.
China responded to the tariffs with strong dissatisfaction, calling them “typical political manipulation” that trampled on the principles of a market economy and international economic and trade rules. They pledged to take resolute measures to defend their rights and interests.