Friday, June, 21,2024

US President Biden increases tariffs on imports of electric vehicles, other goods from China

Washington, DC [US]: US President Joe Biden has directed his Trade Representative to increase tariffs on USD 18 billion of imports from China, including semiconductors, solar cells, batteries, and critical minerals to 'protect' American workers and businesses, the White House said in a statement on Tuesday.

The White House said that the decision has come in response to China's 'unfair trade practices' and to counteract the resulting harms.

"China's unfair trade practices concerning technology transfer, intellectual property, and innovation are threatening American businesses and workers. China is also flooding global markets with artificially low-priced exports. In response to China's unfair trade practices and to counteract the resulting harms, today, President Biden is directing his Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on USD 18 billion of imports from China to protect American workers and businesses," the White House statement read.

The statement on hiked tariffs on imports from China also noted that the Chinese government has used unfair and non-market practices for too long now.

"China's forced technology transfers and intellectual property theft have contributed to its control of 70, 80, and even 90 percent of global production for the critical inputs necessary for our technologies, infrastructure, energy, and health care--creating unacceptable risks to America's supply chains and economic security," the White House said.

"Furthermore, these same non-market policies and practices contribute to China's growing overcapacity and export surges that threaten to significantly harm American workers, businesses, and communities," it added.

The US and the European Union have often expressed their concern over "industrial overcapacity" in China that is impacting their domestic companies.

US Treasury Secretary Janet L Yellen met with the Economic Working Group (EWG) and Financial Working Group (FWG) between the US and China in April this year following her trip to Beijing and Guangzhou. "The US delegation continued to express concerns about China's non-market practices and industrial overcapacity," the US Treasury Department had said after the meeting.

"Both sides agreed to further discuss these issues," according to a readout on the meeting.

In a meeting between Xi Jinping and President Emmanuel Macron of France, Ursula von der Leyen, the European Commission president, urged the visiting Chinese President to address "the wave of subsidized exports flowing from his nation's factories into Western countries," NYT reported.

"These subsidized products -- such as the electric vehicles or, for example, steel -- are flooding the European market," von der Leyen said. "The world cannot absorb China's surplus production," von der Leyen was cited in the US daily. 

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