With six months ahead of the presidential election, US President Joe Biden announced that he is quadrupling tariffs on imports of Chinese electric vehicles. "I just imposed a series of tariffs on goods made in China: 25% on steel and aluminum, 50% on semiconductors, 100% on EVs, And 50% on solar panels. China is determined to dominate these industries. I'm determined to ensure America leads the world in them," Biden posted on X, Tuesday, May 14.
Biden did not link his measures to national security, but to competition deemed unfair. He accused the Chinese government of having "cheated by pouring money into Chinese companies which then dump cheap products onto the market, hurting competitors who play by the rules." Under his mandate, the US has launched a massive subsidy program to relocate industry and fund the energy transition. The Biden administration does not want this (re)emerging industry to be destroyed by competition. The decision comes on the heels of a review of Donald Trump's anti-Beijing measures from 2018; the Biden administration is not removing any of these tariffs, but rather adding to them.
To present his measures in the White House Rose Garden, Biden gave the floor to the head of Century Aluminum – the sector's lame duck, which has been making financial losses for five years, and which had already obtained the introduction of tariffs under Trump – and to a representative of the steel union whose stronghold, Pittsburgh, Pennsylvania, will be decisive for the presidential election. Biden praised American steel, which he said consumes "half as much carbon as Chinese steel," and again defended the unions. "I'm determined that the future of the electric vehicles will be made in America by union workers. Period," he stated to applause, even though market leader Tesla is not unionized.
The decision was guided by domestic considerations. Trailing in the polls in most swing states, criticized by young people for his handling of the war in Gaza and unable to stem the flow of migrants at the border, Biden has decided to adopt a warlike tone toward China. He is under pressure from Trump, who has been repeating for months that the Chinese and the energy transition will kill off the American auto industry.
Transparent protectionism
When the idea of new taxes leaked to the press, Trump claimed ownership. "Biden finally listened to me. He's about four years late," said the Republican candidate at a rally in New Jersey on Saturday, May 11, promising 200% taxation on Chinese vehicles transiting Mexico. And on Tuesday, before entering the room where his trial is being held in New York, he commented on the imposition of tariffs, deeming the measure insufficient: "China's eating our lunch right now. (…) In Michigan [a swing state and historical home of the automobile industry, along with Detroit] … jobs are starting to leave."
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