The U.S. plans to slap new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment — an election-year move that's likely to increase friction between the world's two largest economies.
The tariffs are unlikely to have much of an inflationary impact because of how they're structured. Administration officials said they think the tariffs won't escalate tensions with China, yet they expect that China will explore ways to respond to the new taxes on their products. But the tariffs could contribute to a wider trade dispute, potentially leading to higher prices for consumers.
The tariffs are to be phased in over the next three years, with those that take effect in 2024 covering EVs, solar cells, syringes, needles, steel and aluminum and more. There are currently very few EVs from China in the U.S., but American officials worry that low-priced models made possible by Chinese government subsidies could soon start flooding the U.S. market.
Under the findings of a four-year review on trade with China, the tax rate on imported Chinese EVs is to rise to 102.5 per cent this year, up from total levels of 27.5 per cent. The review was undertaken under Section 301 of the Trade Act of 1974, which allows the government to retaliate against trade practices deemed in violation of global standards...
This was excerpted from the 14 May 2024 edition of CBC News.