US Weighs Tariffs on Chinese EVs, Solar

• The US is reportedly considering raising tariffs on Chinese goods, including EVs and solar products, to limit reliance and protect the US green industry. With Biden in office, officials are debating tariffs and looking to review them early in 2021. Potential targets include EV battery packs and consumer products, though the impact on the yuan and Chinese markets may be limited.

The US is reportedly considering raising tariffs on some Chinese goods, including electric cars and solar products, as it looks to limit reliance on Asia’s biggest economy and shield its own green industry. Officials in President Joe Biden’s administration have largely left in place Trump-era tariffs on around $300 billion of Chinese goods, but the White House and other agencies are debating the levies again, with an eye on completing a review of the tariffs early in the new year. Potential targets for increased tariffs also include EV battery packs, with Contemporary Amperex Technology Co. Ltd., based in Ningde, Fujian, being the world’s biggest maker of EV batteries. Meanwhile, the US is also said to be considering lowering tariffs on some Chinese consumer products that officials don’t see as strategically important. The potential tariff hikes could have limited impact on the yuan and Chinese markets, though increased tensions over trade could hurt the recovery.

Will US Raise Tariffs on Chinese Goods?

• Although President Joe Biden’s administration has largely left in place Trump-era tariffs on around $300 billion of Chinese goods, they are now debating the levies again, with an eye on completing a review of the tariffs early in 2021.
• Potential targets for increased tariffs include electric cars, solar products, EV battery packs, and other products that the US sees as strategically important.
• The US is also said to be considering lowering tariffs on some Chinese consumer products that officials don’t see as strategic.
• If the US decides to raise tariffs on Chinese goods, it could have a limited impact on the yuan and Chinese markets, but the increased tensions over trade could hurt the recovery.
• It is unclear if and when the US will decide to raise tariffs on Chinese goods, or if the levies will be raised in a targeted or widespread manner.
• The Biden Administration is also negotiating with China on a potential trade deal to address key issues like technology, intellectual property, and manufacturing.