US President Joe Biden has imposed restrictions on electric cars from China, blocking their entry into the USA with special tariffs of 100 percent. Additionally, the US government has increased tariffs on products like solar cells, semiconductors, harbor cranes, and medical items including protective masks. The US government claims that China is flooding global markets with artificially discounted exports, affecting imports from China worth $18 billion.
Biden’s decision to restrict Chinese electric car exports is based on his observations in Scranton, Pennsylvania, where he saw the consequences of production moving to other countries. The President’s focus is on maintaining fair competition and protecting vital industries like the chip sector and infrastructure. The tariffs on Chinese imports continue the trend started by Biden’s predecessor, Donald Trump.
China has expressed discontent with what they refer to as economic coercion from the US. Beijing denies promoting economic surpluses and emphasizes that their green energy industry contributes positively to global issues like climate change. Despite US criticisms of Chinese economic practices, China remains firm in its stance against any unfair trade practices or tariffs imposed by the US.
The restrictions are limited to strategically important areas as the Biden administration aims for a stable relationship with China. White House National Economic Council director Lael Brainard stated that the President wants to ensure fair competition and prevent the dominance of Chinese manufacturers. Tesla CEO Elon Musk has warned about the impact of Chinese manufacturers on other car companies without trade barriers.
