(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Jisun] The Biden administration in the United States is increasing tariffs on Chinese electric cars from the current 25% to 100%, a fourfold increase.

Additionally, tariffs on steel, aluminum, and lithium-ion batteries for electric vehicles will be raised to 25%, while tariffs on semiconductors and solar panels will increase from 25% to 50%, doubling the current rate.

The White House announced through a press release on the 14th (local time) that President Biden instructed the Office of the United States Trade Representative (USTR) to increase tariffs on Chinese imports totaling $18 billion (approximately 24.64 trillion Korean won) under Section 301 of the Trade Act to address China's unfair trade practices and resulting damages.

According to the press release, the U.S. government will initially increase tariffs on Chinese electric cars from the current 25% to 100%.

The White House stated, "Chinese exports of electric cars have increased by 70% from 2022 to 2023, threatening productive investments elsewhere, along with widespread subsidies and non-market practices that pose significant overcapacity risks." They further clarified, "A 100% tariff rate on (Chinese) electric cars will protect U.S. manufacturers from China's unfair trade practices."

Furthermore, tariffs on lithium-ion electric vehicle batteries will increase from 7.5% to 25% this year, while tariffs on lithium-ion non-electric vehicle batteries will also rise from 7.5% to 25% by 2026. Battery components will also see an increase from 7.5% to 25% within this year.

Among essential minerals, tariffs on natural graphite and permanent magnets will rise from the current 0% to 25% by 2026. Tariffs on other essential minerals will increase from 0% to 25% this year.

Additionally, tariffs on certain steel and aluminum products will increase from the current 0-7.5% to 25% within this year, and tariffs on Chinese semiconductors will double from the current 25% to 50% by 2025.

 

 

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