Biden's Economic Advisor Says 'China Is Not Playing By The Rules' So Tariffs On Goods Needed To Ensure 'Level Playing Field'

White House National Economic Advisor Lael Brainard indicated that the tariffs by President Joe Biden on Chinese imported goods are a response to China’s economic practices.

What Happened: During an episode of the Reuters podcast, Brainard mentioned that tariffs were introduced specifically in sectors where the U.S. has made significant legislative investments. She pointed out that the tariffs target sectors like solar energy and battery storage, with the aim of ensuring fair competition and protecting burgeoning domestic industries from China’s export dumping.

“And what is important is unless we enforce our trade laws against China, we would actually not be able to compete on a level playing field,” Brainard added.

She also criticized former President Donald Trump‘s approach of across-the-board tariffs, calling them costly and ineffective. She noted that such tariffs would impose a significant financial burden on American families and affect even those trade partners who comply with international rules.

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Following the announcement, China has vowed to retaliate against the new tariffs, potentially escalating economic tensions between the two global powers.

Why It Matters: The Biden administration’s decision to implement new tariffs on Chinese imports is a strategic move to safeguard U.S. jobs and industries ahead of the November election. The tariffs, affecting $18 billion worth of Chinese products, focus on strategic areas such as aluminum, steel, and critical minerals.

These measures are also designed to counteract China's heavily subsidized production, which has been described as “flooding the market” and harming U.S. manufacturers. President Biden emphasized the need for new tariffs in key sectors of the economy to ensure that American workers are not held back by unfair trade practices.

The Chinese government has strongly condemned the Biden administration for the tariff increase, promising “resolute measures” to safeguard its interests. A spokesperson for the Chinese Embassy labeled the additional tariffs as "political manipulation," especially given their timing ahead of the U.S. elections. The Ministry of Commerce indicated that China will take steps to protect its rights and interests in response to the U.S. action.

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