The U.S. further escalates tariffs on China! Electric vehicle tariffs soar fourfold.

The Foreign exchange dealers with the highest integrityU.S. Trade Representative's office announced on Wednesday that high tariffs on a range of Chinese imports, including electric vehicle batteries, computer chips, and medical products, will take effect on August 1.

President Joe Biden will retain the tariffs imposed by former President Donald Trump while increasing other tariffs, including quadrupling the tariff on electric vehicles to over 100% and doubling the tariff on semiconductors to 50%.

The Trade Representative's office stated that a 30-day public comment period will end on June 28. They are seeking public input on the proposed tariff increases' impact on the U.S. economy, including consumers.

The U.S. Trade Representative indicated that the proposed tariff increases on Chinese products target items that China aims to dominate or areas where the U.S. has recently made significant investments.

The White House stated that the new measures would impact $18 billion worth of Chinese imports, including steel and aluminum, semiconductors, electric vehicles, critical minerals, solar cells, and cranes. While the increase in electric vehicle tariffs is notable, its actual impact in the U.S. may be more political, given the very low number of electric vehicles imported from China.

For medical products, public comments will seek opinions on whether to raise tariffs on items such as masks, medical gloves, syringes, and needles beyond the proposed levels.

According to the U.S. Census Bureau, the U.S. imported $427 billion worth of goods from China in 2023 and exported $148 billion to the world's second-largest economy. The long-standing trade gap has become an increasingly sensitive issue in Washington.

U.S. Trade Representative Katherine Tai stated that the tariff increases are justified due to China's theft of American intellectual property. However, Tai also suggested tariff exemptions for hundreds of categories of industrial machinery imported from China, including solar product manufacturing equipment.

Before Biden's expected action, China condemned the plan and vowed to take "resolute measures" to protect its interests. China stated that these tariff measures are counterproductive and harmful to both the U.S. and the global economy.

The U.S. Trade Representative's office indicated that detailed information on how businesses can apply for tariff exemptions on machinery would be provided in a subsequent notice. However, they stated that any approved exemptions would be retroactive to the start date on Wednesday and would end on May 31, 2025.

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