WASHINGTON, May 14 (Reuters) - U.S. President Joe Biden
on Tuesday unveiled a bundle of steep tariff increases on an
array of Chinese imports including electric vehicles, computer
chips and medical products, risking an election-year standoff
with Beijing in a bid to woo voters who give his economic
policies low marks.
Biden will keep tariffs put in place by his Republican
predecessor Donald Trump while ratcheting up others, the White
House said in a statement citing "unacceptable risks" to U.S.
"economic security" posed by what it considers unfair Chinese
practices that are flooding global markets with cheap goods.
The new measures impact $18 billion in Chinese imported
goods including steel and aluminum, semiconductors, batteries,
critical minerals, solar cells and cranes, the White House said.
The announcement confirmed earlier Reuters reporting.
The United States imported $427 billion in goods from China
in 2023 and exported $148 billion to the world's No. 2 economy,
according to the U.S. Census Bureau, a trade gap that has
persisted for decades and become an ever more sensitive subject
in Washington.
"China's using the same playbook it has before to power its
own growth at the expense of others by continuing to invest,
despite excess Chinese capacity and flooding global markets with
exports that are underpriced due to unfair practices," White
House National Economic Adviser Lael Brainard told reporters on
a conference call.
Even as Biden's steps fell in line with Trump's premise that
tougher trade measures are warranted, the Democrat took aim at
his opponent in November's election.
The White House said Trump's 2020 trade deal with China did
not increase American exports or boost American manufacturing
jobs, and it said the 10% across-the-board tariffs on goods from
all points of origin that Trump has proposed would frustrate
U.S. allies and raise prices. Trump has floated tariffs of 60%
or higher on all Chinese goods.
Administration officials said their measures are "carefully
targeted," combined with domestic investment, plotted with close
allies and unlikely to worsen a bout of inflation that has
already angered U.S. voters and imperiled Biden's re-election
bid. They also downplayed the risk of retaliation from Beijing.
Biden has struggled to convince voters of the efficacy of
his economic policies despite a backdrop of low unemployment and
above-trend economic growth. A Reuters/Ipsos poll last month
showed Trump had a 7 percentage-point edge over Biden on the
economy.
FREE TRADE NO MORE
Analysts have warned that a trade tiff could raise costs for
EVs overall, hurting Biden's climate goals and his aim to create
manufacturing jobs.
Biden has said he wants to win this era of competition with
China but not to launch a trade war that could hurt the mutually
dependent economies. He has worked in recent months to ease
tensions in one-on-one talks with Chinese President Xi Jinping.
Both 2024 U.S. presidential candidates have sharply departed
from the free-trade consensus that once reigned in Washington, a
period capped by China's joining the World Trade Organization in
2001.
China has said the tariffs are counterproductive and risk
inflaming tensions. Trump's broader imposition of tariffs during
his 2017-2021 presidency kicked off a tariff war with China.
As part of the long-awaited tariff update, Biden will
increase tariffs this year under Section 301 of the Trade Act of
1974 from 25% to 100% on EVs, from 7.5% to 25% on lithium-ion EV
batteries and other battery parts and from 25% to 50% on
photovoltaic cells used to make solar panels. "Certain" critical
minerals will have their tariffs raised from nothing to 25%.
The tariffs on ship-to-shore cranes will rise to 25% from
zero, those on syringes and needles will rise to 50% from
nothing now and some personal protective equipment (PPE) used in
medical facilities will rise to 25% from as little as 0% now.
Shortages in PPE made largely in China hampered the United
States' COVID-19 response.
More tariffs will follow in 2025 and 2026 on semiconductors,
whose tariff rate will double to 50%, as well as lithium-ion
batteries that are not used in elective vehicles, graphite and
permanent magnets as well as rubber medical and surgical gloves.
A step Biden previously announced to raise tariffs on some
steel and aluminum products will take effect this year, the
White House said.
A number of lawmakers have called for massive hikes on
Chinese vehicle tariffs. There are relatively few Chinese-made
light-duty vehicles being imported now. Senate Banking Committee
Chairman Sherrod Brown wants the Biden administration to ban
Chinese EVs outright, over concerns they pose risks to
Americans' personal data.