President Joe Biden’s administration is preparing to announce significant adjustments to tariffs on Chinese imports next week, focusing on key sectors and moving away from the broad-based tariff increases favored by Donald Trump, according to individuals familiar with the matter.
A Strategic Approach
This decision marks the conclusion of a review of Section 301 tariffs initiated during the Trump presidency in 2018. The forthcoming tariffs will concentrate on specific industries such as electric vehicles, batteries, and solar cells, while maintaining existing levies mostly unchanged. The announcement is expected on Tuesday, as disclosed by two insiders.
Biden’s Economic Strategy
This move represents one of Biden’s boldest steps in the ongoing economic competition with China. It builds upon recent actions, including Biden’s proposal to increase tariffs on Chinese steel and aluminum and the launch of an investigation into China’s shipbuilding sector.
Global Concerns
Chinese President Xi Jinping’s efforts to boost domestic manufacturing have raised concerns internationally. Leaders from the US and the European Union have cautioned against China’s excessive state subsidies, which have led to a flood of inexpensive exports threatening jobs in their markets.
A Call for Fair Competition
President Biden has emphasized the need for fair competition, expressing a desire not for conflict but for equitable economic interactions with China. Both Biden and Trump are positioning themselves as tough on China as the next election approaches.
Policy Impact
Trump’s tariff policies led to a trade war with China during his administration, resulting in retaliatory measures by China, particularly targeting American agricultural exports.
Legislative Action
Biden’s proposed tariff adjustments will be carried out by the US Trade Representative Katherine Tai’s office, following a review initiated in 2022. This evaluation seeks to enhance the strategic effectiveness of tariffs.
Recent Diplomatic Engagements
The announcement follows recent diplomatic engagement between the US and China, with Biden noting progress after a meeting with President Xi in California last November.