President Joe Biden turns as reporters ask questions as he arrives at Seattle-Tacoma International Airport, Friday, May 10, 2024, in SeaTac, Wash. on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment — an election year move that’s increasing friction between the world’s two largest economies.The Chinese government was quick to push back, issuing a statement Tuesday that the tariffs “will seriously affect the atmosphere of bilateral cooperation.
“China is simply too big to play by its own rules,” Brainard told reporters on a Monday call previewing the announcement. Under the 301 guidelines, the tariff rate is to double to 50% on solar cell imports this year. Tariffs on certain Chinese steel and aluminum products will climb to 25% this year. Computer chip tariffs will double to 50% by 2025.
“We’re still reviewing the tariffs to understand exactly what’s affected and how,” said Russell Datz, spokesman for Volvo, a Swedish brand now under China’s Geely group. A message was left seeking comment from Polestar, which also falls under Geely. The Europeans are worried, too. The EU launched an investigation last fall into Chinese subsidies and could impose an import tax on Chinese EVs.
The tensions go far beyond a trade dispute to deeper questions about who leads the world economy as a seemingly indispensable nation. China’s policies could make the world more dependent on its factories, possibly giving it greater leverage in geopolitics. At the same time, the United States says it’s seeking for countries to operate by the same standards so competition can be fair.