In a significant escalation of trade tensions, U.S. economists and analysts are warning of severe repercussions from the latest series of tariffs on imports from China. Set to take effect on September 27, the new tariffs include a 100 percent duty on Chinese electric vehicles, a 50 percent duty on solar cells, and a 25 percent duty on steel, aluminum, electric vehicle (EV) batteries, and key minerals.
Jason Oxman, president of the Washington-based Information Technology Industry Council, criticized the move, stating that the United States has repeatedly resorted to imposing more tariffs, ignoring industry concerns about economic impacts and supply chain resilience. “U.S. tariffs have already cost American businesses and consumers $221 billion since implementation,” Oxman noted.
Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, echoed these concerns in an interview with Xinhua News Agency. He pointed out that U.S. trade policy limits Americans’ access to high-quality and affordable foreign products. “The new tariffs will deprive American consumers of the right to buy cost-effective Chinese electric vehicles,” Hufbauer said.
William Alan Reinsch, a senior adviser at the Center for Strategic and International Studies, warned that the tariffs could further hinder the United States’ ability to leverage China’s comparative advantages in green technology production. “This, in turn, could impede U.S. efforts to transition to renewables,” Reinsch explained.
Reinsch added that liberalizing trade with China would allow U.S. manufacturers to significantly scale up operations by accessing lower-cost inputs and providing consumers with affordable goods essential for achieving decarbonization goals. “The tariffs highlight a misalignment in U.S. decarbonization policies,” he stated. “They were imposed just as the U.S. Department of the Treasury released final rules on the clean vehicle provisions of the Inflation Reduction Act, which offer additional flexibility in minerals and battery sourcing.”
Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, cautioned against the global trend toward protectionism. In his interview with Xinhua News Agency, Sachs said, “The world should beware of falling into a vicious cycle of protectionism. The U.S. is walking away from its international responsibilities and violating international economic and trade rules.”
Sachs emphasized the need for China and other countries to firmly defend the international trade system and maintain the openness of global trade. “It’s imperative to uphold a fair and open global trade environment,” he urged.
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U.S. economists warn of dire consequences from tariffs on China
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