EXCELLENT: USA Targets Chinese Exports

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The Biden administration announced increased tariffs yesterday on Chinese products, the latest expansion of US duties on goods manufactured in the world’s second-largest economy. Imports of electric vehicles will see the steepest increase in tariffs, quadrupling from 25% to 100%. Former President Donald Trump first implemented heightened tariffs on solar panels, metals, and more in 2018 (see tracker).

Tariffs are taxes—typically collected as a percentage of the good’s value—placed on importers of foreign goods, often designed to protect consumers from low-quality goods or manufacturers from cheaper foreign competition (see 101). Economists claim the cost of tariffs is often passed on to domestic consumers.

US and global officials have argued China artificially lowers the price of its exports with subsidies to undercut domestic sellers. China produces one-third of the world’s manufactured goods and exports roughly $500B in goods to the US annually. The new tariffs are slated to apply to roughly 2% of those exports. Learn more about China’s manufacturing here.

Source: 1440.com



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