U.S. Considers Tariff Hike on Chinese Electric Vehicles in Ongoing Trade Discussions

In a recent development, sources reveal that the Biden administration is contemplating an increase in tariffs on certain Chinese goods, specifically targeting electric vehicles (EVs), according to reports from the Wall Street Journal on Wednesday.

Chinese-made automobiles currently face a 25% tariff, initially imposed during the tenure of former President Donald Trump and later extended by the Biden administration. The ongoing deliberations are part of a broader review of tariffs on approximately $300 billion worth of Chinese goods initiated during the Trump era, with the intention of concluding the assessment early next year.

In addition to the discussions on potential tariff hikes for clean-energy products like EVs, the Biden administration is also exploring the possibility of reducing tariffs on select Chinese consumer goods deemed less strategically significant.

The move to reevaluate tariffs comes as lawmakers and some U.S. automakers argue that the existing import tariffs on Chinese-made vehicles are insufficient. Critics contend that the adjustments are necessary to ensure fair trade practices and support domestic industries.

As of now, there has been no official response from the office of the U.S. Trade Representative or the National Security Council regarding these developments.

The outcome of these discussions will be closely monitored, as it could have significant implications for the trade dynamics between the United States and China, particularly in the electric vehicle sector.

Source: The Economic Times