| The Biden administration plans to impose major new tariffs on electric vehicles, semiconductors, solar equipment and medical suppliesTariffs on electric vehicles, in particular, could quadruple — from the existing 25 per cent to 100 per cent. The plan was described by the people on condition of anonymity because they were not authorised to provide details ahead of a formal announcement.
Biden has defined his policy as “competition with China, not conflict”. He has embraced an industrial strategy that has used government financial support to pull in private investment in new factories and advanced technology, while limiting the selling of computer chips and other equipment to China. There is the risk that tariffs could lead to a broader trade conflict between the two countries as they respond to each other’s moves. China is seeking to create a technological edge and move up the economic chain.
Lithium battery plants built in restricted farmlands or industrial zones should be shut down, the draft says. Meanwhile, Ohio Democratic Senator Sherrod Brown said in a tweet on Friday that “Tariffs are not enough. We need to ban Chinese EVs from the US. Period.”The Biden administration has also said it will investigate Chinese-made “smart cars” that can gather sensitive information about Americans driving them.