Key facts
- US to impose tariffs on Chinese electric vehicles, batteries, and solar cells.
- Tariffs on EVs will quadruple to 100%.
- Tariffs on solar cells will triple to 50%.
- New tariffs on semiconductors will double to 50% by 2025.
- The measures aim to counter China's industrial overcapacity.
The Biden administration announced significant new tariffs on a range of Chinese imports, including electric vehicles, batteries, and solar cells. The tariff rate on Chinese electric vehicles will quadruple from 25% to 100% this year. Tariffs on solar cells will triple from 15% to 50% this year. Additionally, tariffs on certain Chinese semiconductors will double from 25% to 50% by 2025. The administration stated these measures are intended to counter China's industrial overcapacity and protect American manufacturing jobs and industries. The U.S. Trade Representative's office conducted a review of the existing Section 301 tariffs imposed under the Trump administration, leading to these updated rates. The move is expected to increase tensions between the two largest economies.