Tariffs on Chinese goods such as Chinese electric cars are being considered so the green industry of the US will be protected.
Regarding the possible rise of tariffs on Chinese goods, China is said to be dominating the global electric car market. (Photo: Reuters)
A Possible Raise Of Tariffs On Chinese Goods
The US is considering raising tariffs on Chinese goods such as electric cars to decrease reliance on China’s economy. This rise of tariffs on Chinese goods is to also protect its green industry, according to the Wall Street Journal.
Although the Biden administration has largely maintained the tariffs on Chinese goods imposed by Trump on around $300 billion worth of Chinese goods, a review of the levies is underway that could lead to their modification early next year. Regarding tariffs on Chinese goods, China dominates the global electric car market, particularly in Europe, where it is accused of flooding the market with inexpensive vehicles through unfair subsidies.
However, the current 25% tariff on Chinese goods such as electric vehicles in the US limits their ability to compete in the market, and the rise of tariffs on Chinese goods will not have an immediate impact on consumers from the US.
According to a published article by Bloomberg, there is growing political pressure in the US to increase tariffs on Chinese goods. Lawmakers are also recommending higher tariffs on Chinese goods and stricter investment restrictions.
The upcoming presidential election in the US may further exacerbate tensions between the two countries in line with raising tariffs on Chinese goods.
Industries Of Solar Energy And Electric Vehicles
In a published article by digitimes, the solar energy and electric vehicle (EV) industries have faced unexpected market developments that are causing concerns among supply chains. In the United States, the expiration of tariff exemptions on solar panels from Southeast Asia in mid-2024 is expected to significantly increase costs for US manufacturers.
Despite efforts to extend the exemption period, it was ultimately vetoed by President Biden. The upcoming elections in 2024 add variables to solar energy policies, as lobbying by interest groups becomes more prevalent.
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