U.S. President Joe Biden on Tuesday announced sweeping tariff hikes on imports from the Chinese mainland, ranging from electric vehicles (EVs) to solar cells. This move is part of a broader package of measures aimed at ostensibly protecting American jobs. Among the sharpest increases, levies on Chinese EVs will jump to 100 percent this year.
U.S. Treasury Secretary Janet Yellen defended Biden's decision, stating, \"We're not willing to allow our emerging industries we're targeting for support to be wiped out through China's action.\" She emphasized that the levies are intended to protect the development of U.S. sectors and secure their supply chains.
However, a tariff fight against the Chinese mainland, contrary to Washington's intentions, is set to make ordinary Americans the largest victims.
To begin with, tariffs ultimately tax the consumer. While few Chinese EVs are currently sold in the United States, the immediate impact on American consumers may appear minimal. Nevertheless, the deep integration of global supply chains means the U.S. market will inevitably suffer from the hike.
The U.S. already imports substantial amounts of materials from the Chinese mainland for its own EV production. According to the U.S. Department of Transportation, American EV brands including Tesla and Ford Mustang incorporate between 30 percent to 51 percent Chinese contents. \"From the battery, from the mining, from all the technology integration, the Chinese supply chain now is the leading supply chain. It's the best,\" Reuters quoted Stella Li, CEO of BYD Americas, as saying.
Shutting the door on the Chinese mainland's high-quality and cost-efficient materials will inevitably drive up the costs of EV production, batteries, and other hardware in the United States. In this context, Biden's tariff hike against the Chinese mainland is, in fact, a strike against his own domestic firms that rely on Chinese materials, with American consumers ultimately paying the price.
Reference(s):
cgtn.com
