President Joe Biden has implemented substantial tariffs on a wide range of Chinese imports, mirroring policies previously criticized by Vice President Kamala Harris. This decision, announced on September 13, 2024, underscores the ongoing economic tensions between the United States and China.
The new tariffs include a 100% duty on electric vehicles, 50% on solar cells, and 25% on steel and aluminum imports from China. Additional levies will affect clothing, medical supplies, and other goods. This move aims to protect American manufacturing from what the administration perceives as unfair competition.
Interestingly, this action comes despite Harris's earlier criticism of similar tariffs proposed by Donald Trump. During a presidential debate on September 10, 2024, she referred to Trump's proposed 60% tariffs as a "Trump sales tax," citing a study suggesting such measures could increase annual costs for an average family by $3,900.
The Biden administration's decision to maintain and expand tariffs on over $300 billion worth of Chinese goods reflects a continuation of policies initiated during Trump's presidency. This approach highlights the bipartisan view of China as a significant economic and strategic competitor to the United States.
Lael Brainard, a government trade adviser, justified the electric vehicle tariff, stating it addresses the "very significant unfair cost advantage" of Chinese electric vehicles in global markets. This stance aligns with concerns about China's growing dominance in the EV sector, as China has become the world's largest electric vehicle market with 3.3 million EVs sold in 2021.
The ongoing trade tensions between the US and China have had far-reaching effects. The US-China trade war, which began in 2018, has led to increased economic friction and global impacts on supply chains and consumer prices. Despite a "Phase One" trade deal signed in January 2020, many tariffs have remained in place.
It's worth noting that China is the United States' largest goods trading partner, with total goods trade reaching $559.2 billion in 2020. However, the US trade deficit with China stood at $310.8 billion in the same year, down from $419.2 billion in 2018.
"Trump's plan for 60 per cent tariffs on Chinese imports is a Trump sales tax."
While the Biden administration's trade policies appear to align closely with those of the previous administration, Harris has attempted to distance herself from some of Trump's economic plans. However, she has adopted similar policies, such as the "no tax on tips" proposal for hospitality workers.
The decision to maintain and expand tariffs on Chinese goods reflects the complex nature of US-China relations and the challenges of balancing economic competitiveness with consumer interests. As both nations continue to navigate these tensions, the global economic landscape remains influenced by their ongoing trade disputes.