President Joe Biden is expected to announce a significant increase in tariffs on various Chinese goods, including electric vehicles (EVs), semiconductors, solar products, batteries, steel and aluminium.
This move comes after a review of tariffs imposed during the previous administration on imports totalling around $300 billion, with most of these tariffs remaining unchanged.
The focus on raising tariffs on Chinese EVs is aimed at preventing an influx of these vehicles into the US market. Biden's administration aims to protect American workers from foreign competition, a promise that Biden reiterated in key swing states like Pennsylvania, ABC News reported.
While some critics express concerns about potential strains on relations with China and increased costs for consumers, proponents argue that the move demonstrates a strategic approach to trade policy.
Biden's emphasis on domestic manufacturing and green energy investments aligns with his broader agenda.
According to Morningstar, investors seem optimistic about the news, as evidenced by the rise in stock value for Chinese EV maker Zeekr on Wall Street, suggesting confidence in the minimal immediate economic impact of the tariffs on Chinese EVs.
