New tariffs imposed by the United States on imports from the Chinese mainland are sparking significant concern among economists and industry leaders. Set to take effect on September 27, these tariffs include a 100% duty on Chinese electric vehicles, 50% on solar cells, and 25% on steel, aluminum, EV batteries, and key minerals.
Jason Oxman, president of the Washington-based Information Technology Industries Council, criticized the move, stating that the U.S. has repeatedly resorted to more tariffs, ignoring industry concerns about economic impacts and supply chain resilience. He highlighted that U.S. tariffs have already cost American businesses and consumers $221 billion since their implementation.
Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, pointed out that the U.S. trade policy limits Americans' access to high-quality and affordable foreign products. He emphasized that the new tariffs will deprive American consumers of the opportunity to purchase cost-effective Chinese electric vehicles.
William Alan Reinsch, a senior adviser at the Center for Strategic and International Studies, warned that these tariffs could further hinder the United States' ability to leverage the Chinese mainland's comparative advantages in green technology production. He explained that this could impede U.S. efforts to transition to renewable energy sources.
Reinsch added, \"Liberalizing trade with the Chinese mainland would allow U.S. manufacturers to significantly scale up operations by accessing lower-cost inputs, and provide consumers with affordable goods essential for achieving decarbonization goals.\" He also noted the misalignment in U.S. decarbonization policies, pointing out that the tariffs were imposed just as the U.S. Department of the Treasury released final rules on the clean vehicle provisions of the Inflation Reduction Act.
Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, warned that the world should beware of falling into a vicious cycle of protectionism. He stated that the U.S. is walking away from its international responsibilities and violating international economic and trade rules. Sachs urged China and other countries to firmly defend the international trade system and maintain the openness of global trade.
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U.S. economists warn of dire consequences from tariffs on China
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