China is likely to face new taxes on goods like electric cars, batteries, and solar panels, which Joe Biden is expected to announce. These tariffs will be added to the tax hikes that former President Donald Trump put in place, but they will only affect these places.
If this is put forward, it would be Biden’s biggest move in the trade war with China. Few Chinese-made cars are sold in the United States because Trump and Biden put limits on electric cars made in China. Additionally, Biden made these limits even stricter.
The government is worried about EVs from China because their prices can be lower and their goods can have better batteries and more advanced technology. A group called Alliance for American Manufacturing said that letting cars made in China on the market would be like putting American car companies out of business.
This makes the government also nervous about cars on the road that have Chinese technology in them. They said this technology could be hacked, which would allow people to see information about U.S. infrastructure because the cars have cameras and sensors built in.
As a candidate for president in November, Donald Trump said that he would put a 100% tariff on “every single car that comes across the line from Chinese-owned manufacturing plants.”
That was last month when Biden said he “wasn’t looking for a fight with China” but that the US would stand firm against their “unfair economic practices and industrial overcapacity.” Biden was talking about how China is thought to make too many things, like solar panels, so they can sell them for less money. If people could choose between these two products, they would probably pick the cheaper one, which would be terrible for American solar companies.
