US Raises Import Tariffs on Electric Cars from China to 100%
The White House said on Tuesday (14/05) that it was raising tariffs on imported goods from China to around $18 billion (around IDR 289 trillion), calling the move the United States' (US) response to Beijing's "unfair" trade practices. .
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"China's unfair trade practices regarding technology transfer, intellectual property and innovation threaten many American businesses and workers," the White House said. "China is also flooding global markets with artificially low-priced exports."
What is subject to higher import tariffs?
Perhaps the most prominent and sharpest increase was in import tariffs on electric cars made in China. The rate increased from 25% to 100%, plus several other extra fees.
The White House cited "extensive subsidies and non-market practices that lead to a substantial risk of overcapacity" as one of the reasons for the increase in import tariffs.
Semiconductors, batteries and battery packs, some steel and aluminum products, various minerals and ores from manganese to cobalt, as well as radioactive substances, are among the goods that will be affected by the increase in import costs.
Medical equipment such as respirators and face masks as well as syringes are also included in the list, most of which are currently free from import tariffs.
Some restrictions will also be implemented this year, according to the US government. Meanwhile, others, such as doubling semiconductor tariffs from 25% to 50%, will only be implemented gradually in 2025.
US Treasury Secretary Janet Yellen said on Tuesday (14/05) that she had alerted Chinese authorities to US concerns and also discussed the reasons for them during Yellen's recent visit to the country.
"Concerns about overcapacity are widely expressed by our partners across developed economies and emerging markets, motivated not by anti-China policies but by a desire to prevent damaging economic dislocations resulting from economic practices that unfair," Yellen said.
US: This step is designed for green investment in the country
Many of these changes focus on China's new strength in renewable energy, batteries and electric cars.
Replacement lithium-ion batteries and battery parts for cars and other types of batteries will be subject to new import tariffs, as will natural graphite and permanent magnets for such batteries, solar panels and some minerals needed for various green technologies.
"This action to counter China's unfair trade practices is carefully targeted at strategic sectors, the same sectors in which the US is making historic investments under US President Joe Biden's administration to create and sustain good-paying jobs, the White House said.
The statement also criticized former president Donald Trump's efforts to limit trade with China during his term in office, saying it "failed to increase American exports or boost American manufacturing as he promised."
China is predicted to be one of the foreign policy issues that will emerge in the US presidential election campaign in the coming months.
Scholz voiced skepticism, pending EU investigation
German Chancellor Olaf Scholz, visiting his counterpart in Stockholm on Tuesday (14/05), was asked about the US decision and whether Germany might be planning a similar move.
Scholz touched on an ongoing European Commission investigation into possible unfair trade practices by China, and said he could not comment concretely while the investigation was ongoing.
"But I would say that, at least at the moment, 50% of imports of electric vehicles made in China come from Western companies that produce them there and then import them to Europe," Scholz said. "That might be a differentiator between other countries and North America on this issue."
He also pointed out how China is an important export market for European carmakers.
Swedish Prime Minister Ulf Kristersson also voiced similar skepticism, saying that imposing tariffs at home is generally "not a good idea for big exporters like Germany and Sweden."
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