WASHINGTON AND SAN FRANCISCO — The United States is gearing up for a major move in its ongoing trade war with China, as President Joe Biden is expected to announce new tariffs targeting strategic sectors such as electric vehicles, semiconductors, and solar equipment. According to sources familiar with the matter, the announcement could happen as soon as next week, but may also be delayed.
The new tariffs will likely maintain existing levies and could invite retaliation from China, as tensions between the two countries continue to escalate. However, the Biden administration is determined to take a more targeted approach, focusing on areas of interest within strategic competitive and national security sectors.
The U.S. Trade Representative’s office submitted its recommendations to the White House weeks ago, but the final decision was delayed as the administration debated the package internally. Despite the potential backlash, Biden is determined to differentiate his approach from that of his predecessor, Republican candidate Donald Trump, who favored across-the-board tariffs that were seen as too broad and likely to cause inflation.
Both Biden and Trump have deviated from the long-standing free-trade consensus in Washington, especially since China’s accession to the World Trade Organization in 2001. In 2022, Biden initiated a review of the Trump-era trade policy under Section 301 of the U.S. trade law. Last month, he called for higher tariffs on certain Chinese metal products but limited the scope to steel and aluminum, estimated at over $1 billion.
In addition to the new tariffs, the Biden administration has launched an investigation into Chinese trade practices in the shipbuilding, maritime, and logistics sectors, which could lead to further tariffs. The administration has also been pressuring Mexico to prohibit China from indirectly selling its metal products to the U.S. through the neighboring country.
The Chinese government has already expressed its opposition to the new tariffs, calling them counterproductive and harmful to both the U.S. and global economy. However, the Biden administration remains steadfast in its commitment to protecting American industries and workers from unfair trade practices.
Biden’s approach to the trade war with China is not about starting a new conflict, but rather recognizing the reality of a new paradigm of competition between the two countries. While he does not want a full-blown trade war, the president understands the need to take targeted measures to ensure a level playing field for American businesses.
The new tariffs also serve as a message to China and other countries that the U.S. will not tolerate unfair trade practices that harm American industries and workers. By focusing on strategic sectors, the Biden administration hopes to level the playing field and create a more balanced and fair trading relationship with China.
The announcement of the new tariffs comes at a crucial time for both countries, as they continue to grapple with the economic fallout of the COVID-19 pandemic. While the global economy is slowly recovering, tensions between the U.S. and China remain high, and the new tariffs are likely to further strain the relationship.
However, the Biden administration is confident that these targeted measures will ultimately benefit the American economy in the long run. By protecting American industries and workers, the U.S. can continue to thrive and compete in the global market.
In conclusion, the announcement of new tariffs on China by President Joe Biden is a strategic move to address the ongoing trade imbalance between the two countries. While the decision may invite retaliation from China, the Biden administration is determined to take a targeted and measured approach to protect American industries and workers. This move sends a strong message to China and other countries that the U.S. will not tolerate unfair trade practices and is committed to creating a more balanced and fair trading relationship. Ultimately, these measures will benefit the American economy and ensure a level playing field for American businesses in the global market.
