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US doubles its tariff on Chinese tech products

Posted May. 15, 2024 07:48,   

Updated May. 15, 2024 07:48


The U.S. government's decision to increase tariffs on Chinese electric cars, batteries, general-purpose semiconductors, medical equipment, and solar products is significant. This tariff hike, ranging from a minimum of double to four times the current level, directly responds to China's excessive production and low-priced exports of products known as BBC (batteries, bio, semiconductors) and those related to eco-friendly areas.

In a press release, the White House clarified that this decision was a direct order from President Joe Biden. He is directing his Trade Representative to increase tariffs under Section 301 of the Trade Act on 18 billion U.S. dollars of imports from China.

As a result, the tariff rate on Chinese electric vehicles will be raised to 100% within the next three years, starting from the current 25%. The tariffs for general-purpose semiconductors will increase to 50% by 2025 from the current 25%. The rate for batteries will soar from 7.5 to 25% by 2026. The tariff rate for medical equipment, currently duty-free, will reach 50%.

The measure builds up on the tariff the previous Trump administration imposed on some 9,500 categories of Chinese products in 2018. High-ranking officials from the Biden administration stated on Monday that Washington will cooperate with partners from across the globe, signaling pressure on its key allies to join tariff increase against China. This move could potentially strain global trade relations, a concern that U.S. Secretary of Treasury Janet Yellen has also raised, cautioning against a possible trade retaliation from China.

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