The Chinese government has strongly condemned the Biden administration for increasing tariffs on a range of Chinese imports, vowing to retaliate, although specific measures have not yet been disclosed.
What Happened: China has criticized the additional tariffs as “political manipulation,” pointing out that the decision comes ahead of the U.S. elections this year, Bloomberg reported on Wednesday. Chinese Embassy spokesman Liu Pengyu dismissed accusations of Chinese overcapacity as a “false narrative” aimed at hampering China’s economy. He praised China’s manufacturing sector for its competitiveness, innovation, and efficiency.
"China will take resolute measures to safeguard its own rights and interests," the Ministry of Commerce said in a statement Tuesday.
"The U.S. should immediately correct its wrong actions and cancel the additional tariff measures against China."
Meanwhile, Reuters reported that the state media agency Xinhua trolled the tariffs, “What does not kill you makes you stronger. It seems the famous quote applies to China’s technology companies.”
The U.S. has raised tariffs on various Chinese goods, including semiconductors, solar cells, and critical minerals. The rates range from 25% for batteries to 100% for electric vehicles. This move follows a review of former President Donald Trump‘s tariff hikes, none of which have been reversed.
Why It Matters: The Biden administration’s tariff hikes are part of a broader strategy to safeguard U.S. jobs ahead of the November elections. 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 Biden stated was "flooding the market" and harming U.S. manufacturers. President Biden announced these new tariffs in key sectors of the economy to ensure that American workers are not disadvantaged by unfair trade practices.
Wedbush analyst Dan Ives had previously expressed his belief that China would retaliate if the U.S. were to increase tariffs on electric vehicle imports from China.
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