White House levy to protect US makers from cheap imports likely to inflame trade tensions
The US president, Joe Biden, has announced a 100% tariff on Chinese-made electric vehicles as part of a package of measures designed to protect US manufacturers from cheap imports.
In a move that is likely to inflame trade tensions between the world’s two biggest economies, the White House said it was imposing more stringent curbs on Chinese goods worth $18bn.
Sources said the move followed a four-year review and was a preventive measure designed to stop cheap subsidised Chinese goods flooding the US market and stifling the growth of the American green technology sector.
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Despite the risks of retaliation from Beijing, Biden said the increased levies were a proportionate response to China’s overcapacity in the EV sector. Sources said China was producing 30m EVs a year but could sell only 22-23m domestically.
Very well thought out, thanks for replying and being honest that no one can accurately assess the outcome of this move yet.
In my eyes, including subsidies in a company’s financials feels more honest than the alternative, though I’d like to see a breakdown of income vs subsidies. I also feel that criticisms of subsidies are hypocritical in this instance, considering that US farming is held up by duct tape, spit, and subsidies.
I do also understand the concerns about being reliant on a single country’s manufacturing and how it could impact national defense, though I would like to submit that we’re already so reliant on Chinese manufacturing capabilities at this point that seeding discord like this is going to have some negative consequences in other markets manufactured in China.