Biden Targets Chinese Imports with Tariffs in an Attempt to Appear Tough on China

President Biden is set to roll out a series of aggressive tariffs on Tuesday, aimed at curbing the influx of cheap Chinese imports in key sectors such as electric vehicles (EVs), batteries, solar equipment, and more. The move signifies a dual purpose: protecting America's burgeoning green technology industries while also making a strategic political manoeuvre against former President Trump.

The tariffs, totalling $18 billion on additional Chinese imports, will be announced during a Rose Garden ceremony at 12:15 p.m. ET today, as per a report from Axios. According to Lael Brainard, Director of the National Economic Council, the objective is to shield U.S. industries from being undercut by unfairly priced Chinese exports, particularly in critical areas like EV batteries, medical equipment, steel, aluminum, semiconductors, and solar panels.

Outflanking Trump on China?

By quadrupling tariffs on Chinese EVs and tripling duties on steel and aluminium, Biden aims to differentiate his approach to China from Trump's while capitalizing on some of Trump's perceived strengths, such as being tough on trade and China. 

Biden's strategy isn't risk free

However, there are risks associated with this strategy, including the potential escalation of a trade war just five months ahead of the election, which could negatively impact the economy—an issue that voters are particularly concerned about.

Despite the risks, Biden's administration remains committed to the move, even as they acknowledge the uncertainty of how Beijing will respond. Treasury Secretary Janet Yellen expressed hope that there wouldn't be a significant Chinese retaliation, but noted that it remains a possibility.

The new tariffs represent not only a protective measure for American industries but also a calculated political move by the Biden administration, as they seek to navigate the complex terrain of trade relations with China while simultaneously addressing domestic economic concerns and countering Trump's influence on these issues.