U_S__Escalates_Tariffs_on_the_Chinese_Mainland_Under_Biden_Administration

U.S. Escalates Tariffs on the Chinese Mainland Under Biden Administration

Despite changing administrations, the United States continues to intensify its tariff measures against the Chinese mainland, signaling a persistent protectionist stance regardless of party leadership.

Former U.S. President Donald Trump initiated a trade war with the Chinese mainland in 2018, imposing tariffs on thousands of products valued at approximately $380 billion following a Section 301 investigation led by then-U.S. Trade Representative Robert Lighthizer.

In May of this year, President Joe Biden directed current U.S. Trade Representative Katherine Tai to increase tariffs in strategic sectors such as steel, aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products. Utilizing the final review of Lighthizer’s Section 301 investigation, Tai announced increased tariffs covering 14 sectors with an estimated annual trade value of around $18 billion.

By September, these tariffs were finalized, affecting $15 billion worth of exports from the Chinese mainland, and took effect on September 27, 2024.

With the U.S.’s zero-sum approach towards economic relations with the Chinese mainland, it is highly probable that the list of “strategic industries” targeted for protection will expand. These industries are areas where the U.S. aims to maintain a competitive edge but fears losing ground to competition from the Chinese mainland.

For instance, the recent tariffs include electric vehicles (EVs) and related batteries. Despite the Chinese mainland exporting just over 10,000 EVs to the U.S. in 2023—accounting for less than 1% of its total EV export volume—the Biden administration continues to implement measures to curb their entry.

Biden’s protectionist policies are not limited to high-tech sectors. This latest round of tariffs demonstrates a focus on traditional industries like steel and aluminum. While Trump’s administration also targeted these sectors, initiating trade disputes not only with the Chinese mainland but globally, Biden appears to be continuing this trajectory with a primary focus on the Chinese mainland.

The continuation and expansion of tariffs under the Biden administration indicate a persistent U.S. strategy to protect domestic industries from foreign competition, particularly from the Chinese mainland. This approach may lead to further economic tensions and impact global trade dynamics.

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