20 May 2024

What Biden’s New China Tariffs Mean for World Trade

Ravi Agrawal

It is now well-known that Beijing has distorted certain markets in part by introducing massive subsidies. For example, China now produces electric vehicles that are widely seen as cheaper and better than anything the West can currently manufacture. On Tuesday, the Biden administration reacted to this reality by quadrupling U.S. tariffs on Chinese electric vehicles to a scarcely believable 100 percent. The move is hardly partisan. On hearing the news about the tariffs, U.S. President Joe Biden’s rival, former President Donald Trump, told reporters he would have wanted more taxes on more products. “China is eating our lunch right now,” Trump said.

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