The Biden Administration is set to quadruple tariffs on Chinese EVs, from 25% to a 100% tariff

President Joe Biden is preparing to unveil new tariffs on Chinese goods, including a significant increase in levies on electric vehicles (EVs), according to sources familiar with the matter. The announcement, expected next week, will maintain the existing tariffs on many Chinese products set by former President Donald Trump. Additionally, new tariffs will be imposed on semiconductors, solar equipment, and Chinese-made medical supplies like syringes and personal protective equipment.

The revision of the "Section 301 tariffs" by the Biden administration is focused on industries deemed strategic for competitiveness and national security. Tariffs on Chinese EVs are expected to quadruple under the new plan. Senate Banking Committee Chairman Sherrod Brown has called for an outright ban on Chinese EVs due to concerns over risks to Americans' personal data.

The U.S. Trade Representative's office made its recommendations to the White House weeks ago, but a final announcement has been delayed due to internal discussions. While the announcement was initially expected on Tuesday, some sources suggest it may be postponed.

President Biden's approach to tariffs contrasts with that of former President Trump, who proposed across-the-board tariffs seen as too blunt and likely to spark inflation. Trump had promised tariffs of 60% or higher on all Chinese goods.

The potential retaliation from China against these measures comes at a time of heightened tensions between the two countries. Both Biden and Trump have moved away from the free-trade consensus that previously dominated Washington, particularly since China joined the World Trade Organization in 2001.

In 2022, Biden initiated a review of Trump-era policies under Section 301 of U.S. trade law. Last month, he called for significantly higher tariffs on Chinese metal products, targeting steel and aluminum products worth more than $1 billion. Biden also launched an investigation into Chinese trade practices in shipbuilding, maritime, and logistics, which could lead to further tariffs.

China has criticized these tariff measures, calling them counterproductive and harmful to the U.S. and global economy.