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As expected, the United States increased import tariffs on some Chinese products. President Joe Biden announced import tariffs of up to 100% will be imposed on electric cars (EVs) made in China. Meanwhile, a 50% tariff is imposed on Chinese semiconductors and solar panels.
Finally, a 25% tariff is imposed on Chinese iron and aluminum. Steps are taken to prevent China from dominating the market of all the above products by offering lower prices than other countries. This will ensure that the United States will continue to be the world leader in all of these markets.
Just a few years ago Biden condemned President Trump's move to increase tariffs on Chinese products for the same reason. At the time he said this action would only burden the citizens of the United States who now have to pay more for the same product.
It is another step taken by the United States in the trade war with China that has lasted almost five years. China also imposes high tariffs on imported products from foreign countries. So America's announcement yesterday is seen as retaliation.
Allies of the United States are now expected to take steps to introduce higher import tariffs on Chinese products in the near future. In Europe for example, Chinese EVs have begun to dominate to the point of threatening the local automotive industry. Elon Musk himself once said that without barriers such as tariffs other automotive companies would be destroyed by EVs made in China. Last year BYD was the world's largest EV manufacturer overtaking the position held by Tesla for a long time.