NEW HAVEN – President Joe Biden’s administration has just announced 100% tariffs on electric vehicles (EVs) manufactured in China, prompting Donald Trump to promise a 200% tariff on Chinese cars made in Mexico if he is elected in November. Neither policy would have notable effects on the US car market, because imports of Chinese EVs are miniscule, owing to past tariffs and the anti-Chinese sentiment that has gripped the country in recent years. Nonetheless, the announcement is significant for three reasons.

First, the latest tariffs – which include steep increases for several other products, ranging from semiconductors to needles and syringes – are the final nail in the coffin of US-China trade cooperation. Denials of a complete decoupling can be put to rest. Gone is any pretense that America is merely erecting a “high fence” around a “small yard,” or trying to manage national-security risks without endangering bilateral economic cooperation. The United States and China are now in a full-blown economic war – one that will have far-reaching geopolitical consequences.

Second, the tariffs signal defeat. Trailing in the polls as this year’s election approaches, Biden and his team feel obliged to join the anti-China, anti-trade fervor that has emerged as one of the very few unifying issues in a polarized country. Moreover, the tariffs, combined with US complaints that China is producing too much and putting pressure on the global economic system, speak to a deep-seated anxiety about America’s international competitiveness.

QOSHE - The High Costs of the New US Tariffs on Chinese EVs - Pinelopi Koujianou Goldberg
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The High Costs of the New US Tariffs on Chinese EVs

39 15
22.05.2024

NEW HAVEN – President Joe Biden’s administration has just announced 100% tariffs on electric vehicles (EVs) manufactured in China, prompting Donald Trump to promise a 200% tariff on Chinese cars made in Mexico if he is elected in November. Neither policy would have notable effects on the US car market, because imports of Chinese EVs are miniscule, owing to past tariffs and the........

© Project Syndicate


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