China objects to US tariff hike on electric cars | Economy

China’s commerce ministry said in a statement on Saturday that Beijing strongly opposes the United States raising tariffs on Chinese imports, urging Washington to immediately correct what it called “irregularities” and cancel all tariffs it has imposed on its goods.

“China will take necessary measures to resolutely defend the interests of Chinese companies,” the statement added.

This comes a day after Washington announced tariff increases on billions of dollars worth of Chinese goods, up to 100% on electric cars and 25% on their batteries, to take effect within two weeks.

The White House in May announced a massive increase in tariffs targeting key sectors including electric vehicles, semiconductors, batteries and solar panels, sparking an angry response from Beijing.

In May, China’s Commerce Ministry condemned the new tariffs, calling them “political manipulation” and urging the United States to immediately rescind the measures.

Chinese Foreign Minister Wang Yi called the US move a “classic example of bullying” and criticised the US for trying to maintain unilateral hegemony.

Wang Yi also called on the international community to oppose the US tariffs, saying, “The international community should ask the US to stop creating new problems.”

The move to raise tariffs comes ahead of the US presidential election in November, during which both Republicans and Democrats are seeking to take a tough stance towards China amid heightened competition between the two countries.

The final increases “will target harmful PRC policies and practices that impact American workers and businesses,” US Trade Representative Katherine Tai said.

In addition to the tariff increases starting this year, the US Trade Representative’s office also confirmed that a 50% tariff on semiconductors (a significant increase from the previous one) will go into effect in 2025.

The measures were taken after a review of tariffs imposed under former President Donald Trump, who announced tariffs on nearly $300 billion worth of Chinese products.

Impact of tariffs

The tariffs affect about $18 billion in annual Chinese imports, including key sectors such as semiconductors, solar cells and critical minerals.

Detailed tariff changes include:

• Electric cars: Tariffs will rise from 25% to 100%, effectively quadrupling the cost.
• Solar cells and semiconductors: customs duties doubled from 25% to 50%.
• Batteries and advanced components: Tariffs will rise to 25%.
• Some steel and aluminum products: Customs duties increased by 3 times from 8.3% to 25%.

These measures are aimed at boosting American industries and protecting jobs, according to Biden administration officials. US Treasury Secretary Janet Yellen said in a previous television interview, “I don’t think American consumers will see any significant increase in the prices they face.”