The U.S. increased tariffs on Chinese products, targeting strategic sectors.

The United States increases tariffs on products from China worth $18 billion.

The United States increases tariffs on products from China worth $18 billion, the White House announced on Tuesday, targeting strategic sectors such as electric vehicles, batteries, steel, and critical minerals.

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Tariffs on electric vehicles will quadruple, from 25% to 100% this year, the White House stated, less than six months before the presidential elections between Democratic incumbent President Joe Biden and his predecessor, Republican Donald Trump.

Semiconductor tariffs will double from 25% to 50% by 2025, the White House added.

The goal is to encourage China to “eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation,” explained the White House in a statement.

The decision was announced after a review of tariffs imposed during the trade war between Washington and Beijing, during which Trump imposed tariffs on around $300 billion worth of goods from China.

The Chinese government responded with criticism to these measures.

“This will seriously affect the atmosphere for bilateral cooperation,” the Ministry of Commerce said in a statement, urging the United States to “immediately correct its wrong actions and cancel the additional tariff measures against China.”

Beyond electric vehicles and semiconductors, Washington triples tariffs on some steel and aluminum products, as well as batteries and lithium-ion battery parts for electric vehicles.

Washington accuses Beijing of heavily supporting its industries in these strategic sectors, with significant subsidies leading to overproduction that Chinese companies sell in the global market, undercutting prices. This prevents the development of competitive industries.

A fear shared by the European Union and other countries, such as Turkey, Brazil, or India, emphasized a U.S. official during a telephonic press briefing.

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Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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