In a recent development, the Biden administration is reportedly in discussions regarding an increase in tariffs on certain Chinese goods, particularly electric vehicles (EVs), according to sources cited by the Wall Street Journal.
China's export of vehicles has been on the rise in recent years, driven by excess production capacity and a slowdown in domestic demand within the world's largest automobile market. It is anticipated that Chinese vehicle exports will surge by 25% in the coming year, reaching 5.3 million units, as per China Merchants Bank International.
The Wall Street Journal's report comes after a bipartisan group of U.S. lawmakers made a request to the administration last month, urging an escalation of tariffs on Chinese-manufactured vehicles. They also called for an investigation into ways to prevent Chinese companies from exporting to the United States through Mexico. Currently, Chinese automobiles face a 25% tariff, a measure introduced during the tenure of former President Donald Trump and subsequently extended by his successor.
The U.S. government is engaged in discussions about the Trump-era tariffs imposed on roughly $300 billion worth of Chinese goods. The aim is to conclude a lengthy review of these tariffs early next year, as reported by the Wall Street Journal.
Additionally, the Biden administration is contemplating a reduction in tariffs on select Chinese consumer products that are not deemed strategically vital. This move is being considered alongside potential tariff increases on clean-energy products.
It's important to note that foreign automakers, including Tesla, also utilize China as a significant export hub. Lawmakers have previously highlighted concerns that U.S. automakers are importing vehicles made in China into the United States, suggesting that current import tariffs may not be sufficient to address these issues.
As of now, the offices of the U.S. Trade Representative and the National Security Council have not provided an immediate response to requests for comment on this matter. This development underscores the ongoing deliberations surrounding trade relations between the United States and China, particularly in the context of the growing electric vehicle industry.