America intends on hiking tariffs on Chinese products

(MENAFN) According to a report by Bloomberg, United States President Joe Biden is poised to escalate tariffs on certain Chinese goods, marking the latest development in the ongoing trade tensions between the world's two largest economies. The proposed tariff hikes, expected to be implemented following a two-year review process, will target key sectors and could see tariffs double, triple, or even quadruple on specific items.

Among the sectors affected, Chinese-made electric vehicles are set to face the steepest increase, with the total levy soaring to 102.5 percent from the current rate of 27.5 percent. Additionally, other products such as batteries, solar cells, steel, and aluminum will also see significant tariff hikes, potentially doubling or tripling existing duties.

The decision to intensify tariffs comes amid concerns voiced by United States Treasury Secretary Janet Yellen regarding China's alleged overproduction of batteries, solar panels, and electric cars, which she contends has flooded the global market with low-cost goods, negatively impacting American workers.

Furthermore, United States trade groups, including the Alliance for American Manufacturing, have raised alarms about the competitive threat posed by China's auto industry, citing the remarkably low prices offered by leading Chinese automaker BYD.

This move by the Biden administration is part of an ongoing tit-for-tat trade dispute that originated in 2018 under the Trump administration. Former President Donald Trump initiated tariffs and trade barriers against China, accusing the country of engaging in unfair trade practices. Since then, successive United States administrations have continued to take actions targeting Chinese firms and imposing restrictions on investment in China.

The escalation of tariffs underscores the deepening tensions between Washington and Beijing and highlights the challenges facing bilateral relations. As both countries navigate complex economic and geopolitical dynamics, the ramifications of these tariff hikes extend beyond trade, impacting global supply chains and potentially reshaping the global economic landscape.



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