- Biden will quadruple electric vehicles from China
- Quadrupling tariffs on clean energy products from China to be announced Tuesday, reports say
The Biden administration is set to announce a four-fold increase in electricity rates from China, new reports suggest.
Officials will announce a major tax increase on clean energy products from China on Tuesday. reports the Wall Street Journal.
The decision will also affect critical minerals, solar products and batteries, sources familiar with the matter told the Journal.
Tariffs on about $300 billion in Chinese goods were first imposed by Donald Trump and have been subject to a years-long review by the White House.
Evidence that China was increasing its exports of electrical goods pushed policymakers in Washington to higher levels in a bid to protect the emerging U.S. clean energy industry.
Chinese electric vehicles, such as BYDs (pictured), will soon be subject to a tariff of around 100 percent, according to reports.
Biden set to announce four-fold increase in electric vehicles from China
The current tariff on Chinese electric vehicles is 25 percent and will increase to about 100 percent, the Journal reports.
In practice, it has blocked vehicles, which can often be cheaper than those made in the West, from the U.S. market.
However, the rise in Chinese manufacturing has the White House and American automakers worried that the current tariff is no longer enough.
The Chinese Foreign Ministry responded to the plans in a briefing on Friday by stating that the tariffs have disrupted trade between the United States and China.
“China will take all necessary measures to defend its rights and interests,” a ministry spokesperson said.
Protecting American industry and jobs from foreign competition has been a key message for Biden as he tries to win swing states like Pennsylvania and Michigan ahead of the November election.
“These are strategic, targeted actions that will protect American workers and ensure fair competition,” Biden said during a campaign visit to Michigan last month.
The president told workers he would raise tariffs on Chinese steel to protect manufacturing jobs in the state.
Tariffs will also be increased on critical minerals, solar products and batteries from China.
In turn, Trump has stated that he would increase tariffs on all Chinese imports to 60 percent if he were reinstated in the White House.
The former president has also argued that the US auto industry could face a “bloodbath” if he loses.
China is trying to increase its clean energy production as a way to stimulate its ailing economy.
However, Treasury Secretary Janet Yellen has repeatedly warned against that approach, arguing that other countries will simply impose tariffs and other impediments to protect their own industries from a flood of cheaper Chinese exports.
“China is too big to export for rapid growth,” he told Chinese officials during a recent visit.