Quiver Quantitative - President Joe Biden is poised to announce new tariffs on China as soon as next week, targeting strategic sectors such as electric vehicles, semiconductors, and solar equipment, according to two sources familiar with the matter. The announcement, which could come as early as Tuesday, is expected to largely maintain existing levies while honing in on specific areas that align with U.S. strategic and national security interests. Although the precise value and categories of the new tariffs remain unclear, the measures aim to protect critical American industries from unfair competition.
The Office of the U.S. Trade Representative made its recommendations weeks ago, but the final announcement was delayed due to internal debates. Biden, who is seeking re-election in November, is looking to distinguish his approach from that of Republican candidate Donald Trump, who previously imposed across-the-board tariffs that the White House deemed too blunt and inflationary. The Biden administration has instead opted for a more targeted strategy, focusing on specific strategic sectors.
In addition to these tariffs, Biden recently called for sharply higher duties on Chinese steel and aluminum products and launched an investigation into Chinese trade practices in the shipbuilding, maritime, and logistics sectors. These actions, coupled with the latest measures, highlight Biden's commitment to counter China's economic influence while ensuring the U.S. remains competitive. However, the new tariffs could prompt retaliation from China, potentially escalating tensions between the world's two largest economies.
China has criticized the tariffs as counterproductive and damaging to the U.S. and global economies. Biden maintains that he seeks competition, not conflict, with China, but remains firm in his resolve to defend American industries. The administration has also pressured Mexico to prohibit China from indirectly selling its metal products to the U.S. through Mexican ports. With trade tensions at a peak, the international business community is closely monitoring Biden's next move as he balances domestic economic interests with global diplomatic challenges.
This article was originally published on Quiver Quantitative