China Slams New US Tariffs, Vows to Defend Economic Interests Amid Trade Tensions

By John Lopez

May 14, 2024 03:45 PM EDT

China is pushing back against the United States' latest move in its ongoing trade war, as President Joe Biden imposes massive tariffs on Chinese imports, including semiconductors and electric vehicles. 

These tariffs, aimed at boosting domestic manufacturing, represent a continuation of the Biden administration's tough stance on trade with China.

President Biden Delivers Remarks From The Rose Garden On His Economic Agenda
WASHINGTON, DC - MAY 14: U.S. President Joe Biden announces increased tariffs on Chinese products to promote American investments and jobs in the Rose Garden of the White House on May 14, 2024 in Washington, DC. In order to protect American businesses, Biden announced the raising of tariffs on Chinese imports that he says are unfairly subsidized by Beijing, including electric vehicles, solar cells, semiconductors and advanced batteries.
(Photo : Photo by Win McNamee/Getty Images)

Biden Implements Massive Tariffs on Chinese Chips and EVs

As reported by Bloomberg, President Biden announced tariffs on approximately $18 billion of Chinese goods on Tuesday. The tariffs, set to take effect over the next two years, target a wide range of products, including semiconductors, batteries, solar cells, critical minerals, port cranes, and medical products. 

The White House stated that these measures are designed to protect American workers and businesses from what it perceives as China's unfair trade practices.

One of the most significant increases is seen in tariffs on Chinese EVs, which will quadruple from 27.5% to 100%. This move will challenge China's practice of encouraging aggressively low pricing by domestic EV manufacturers while levying a lower tariff on US car imports. 

Additionally, the tariff rate on semiconductors will double from 25% to 50% by 2025, aiming to counter China's rush into so-called legacy chips. 

Critical minerals will see a new 25% tariff this year, while natural graphite and permanent magnets will face that rate in 2026. Medical equipment such as facemasks and syringes will also increase.

READ MORE: US Trade Blacklist Hits China's Quantum Research Institutes and Companies; Scientists Sound Alarm

China to Defend Against Biden's Fresh Tariffs

China's response has been swift and firm. CNN reports that the country's Commerce Ministry issued a statement expressing opposition to the new tariffs, emphasizing that they contradict President Biden's commitment to cooperation with China. 

China has vowed to defend its rights and interests resolutely and urged the Biden administration to "correct its wrongdoing."

The escalating trade tensions between the two economic superpowers come amid concerns over China's growing global trade surplus, which is nearing $1 trillion. 

The Biden administration and European Union officials fear that China is attempting to address its overcapacity problem by flooding global markets with underpriced exports. This concern is expected to be discussed at the upcoming G7 summit.

READ NEXT: Joe Biden Signs Law Banning Uranium Imports From Russia to Revive America's Nuclear Fuel Industry

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