quite a bit of tariffs levied on China by Biden admin this morning. Mostly to 25%. chips to 50% and EVs to 100%
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Biden raises tariffs on $18 billion of Chinese imports: EVs, solar panels, batteries and more
Starting this year, will quadruple tariffs on imported Chinese electric vehicles, from 25% to 100%. The import tax on Chinese solar cells will double, from 25% to 50%. And tariffs on some Chinese steel and aluminum imports will increase more than three-fold, from 7.5% today up to 25%.
The president also directed U.S. Trade Representative Katherine Tai to more than triple the tariff rates on lithium-ion batteries for EVs and lithium batteries meant for other uses. Starting in 2025, tariffs on imported Chinese semiconductors will jump from 25% to 50%.
First-time tariffs will be imposed on Chinese imports of medical needles and syringes, as well as massive ship-to-shore cranes, the White House said in a fact sheet. Chinese rubber medical gloves and some respirators and face masks will also be hit with higher tariff rates.
The one thing that is not being raised here is the issue of inflation. Inflation does not only increase consumer prices but also increases producer prices. So products made in the US and Europe are becoming increasingly more expensive and therefor becoming increasingly less attractive to both domestic and international consumers. These measures will further increase inflation in America and will make this matter even worse for them. They can stop Chinese products from going into the US by bans and tariffs but they cant stop other countries from buying Chinese made products. If you go to any of the developing countries you will likely see more Chinese products and technology being used locally simply because they are both affordable and good. They are now desperately trying to protect their domestic markets from Chinese competition but they cant do anything about losing the world market to China.
FriedRiceNSpice
Captain
Steel and aluminum? Medical supplies? Those tariffs are completely asinine, wonder which interest groups those are meant to appease. Other tariffs mainly to be expected and unsurprising, especially on EV/renewables/chips. Hitting legacy chips with tariffs too seems like its going to be counterproductive. US economy is going is going to be disproportionately more impacted by these tariffs than China.
So that move could be subsidised flats for rent or sale in the end?
There is also a sort of hybrid between rent and sale, the local government gives you the house at a tiny fraction of the market price but you can't sell or rent it. Don't know if it's inheritable, though.
