US officials announced that significant tariff hikes on various Chinese imports, including electric vehicles (EVs), computer chips, and medical products, will commence on August 1.
President Joe Biden intends to maintain the tariffs established by his predecessor, Donald Trump, and will further increase certain rates. This includes a rise in tariffs on Chinese EVs to 100% and on semiconductors to 50%.
The Office of the United States Trade Representative, which advises the President on trade policy and oversees trade negotiations, is soliciting public feedback on how the proposed tariff hikes might impact the US economy, consumers, and specific industries. This includes assessing the potential effects of a proposed 25% duty on medical masks and gloves and a 50% tariff on syringes.
Last year, the United States imported nearly $640 million (£503 million) worth of gloves, masks, and syringes from China that will be impacted by these new tariffs.
The targeted products for the increased tariffs are those that China aims to dominate or are in sectors where the United States has recently heavily invested.
Washington is channelling hundreds of billions of dollars into clean energy tax subsidies to foster the development of American industries like EVs and solar energy. The tariffs are designed to protect American jobs by mitigating the risk posed by cheap Chinese imports, which threaten the sustainability of U.S. companies in these key sectors.
