Biden’s voter wooing; hikes on Chinese goods tariffs

Photo: Samuel Corum/Pool/EPA

The United States president, Joe Biden, who will be seeking possible re-election, announced new tariffs on imports of electric vehicles, solar equipment and batteries from China – a move that is viewed to amplify the already intensifying trade tensions between the two global superpowers.

The move comes a month after Biden called for higher tariffs on Chinese steel and aluminum products, and said his administration would investigate Chinese shipbuilding.

Tariffs are expected to increase from 25% to 100% on electric vehicles, from 7.5% to 25% on lithium batteries, and from 25% to 50% on solar cells. Tariff rates on certain steel and aluminum products will also more than triple to 25%, up from 7.5% or less.

Meanwhile, the existing tariffs on imports from China are “already prohibitive”, and have a “significant effect on sales” of such products in the US consumer market. Raising the tariffs even further will have “very little impact on US consumption” as it is.

However, the long term ramifications of this is a potential and possible years-long trade war between the US and China, that could hurt American consumers. China has already warned and vowed to take “resolute” retaliatory measures.

Since the ascension of Dr. Mohamed Muizzu as the Maldives President, his administration has maintained close ties, bilateral and trade, with China.

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