Biden Administration Anticipated to Announce Tariffs on China's EVs
The Biden Administration's Expected Announcement
The Biden administration is anticipated to make a significant announcement regarding tariffs on China as early as next week. The tariffs are expected to impact industries such as semiconductors, solar power, and electric vehicles, according to Bloomberg. This information was disclosed by individuals privy to the matter. The specific industries targeted by these potential tariffs have now been identified. It is anticipated that Beijing will respond with a strong reaction to Biden's forthcoming speech, likely leading to a reciprocal response.
Targeting China's "New Three" Green Goods
The decision to target China's "new three" green goods, which include electric vehicles, batteries, and solar cells, follows a review of Section 301 tariffs. These tariffs were initially implemented under the Trump administration in 2018. According to two individuals familiar with the matter, the announcement is scheduled for Tuesday.
Political Implications and Reactions
The Biden administration's move against Beijing comes at a time when Biden's polling data is spiraling downward. This is not just our observation. Billionaire investor and Duquesne Family Office Chairman & CEO Stan Druckenmiller expressed his belief that Bidenomics has been a disaster in an interview with CNBC's Joe Kernen earlier this week.
Previous Tariffs and Potential Retaliation
Last month, President Biden announced his intention to impose 25% tariffs on Chinese steel and aluminum. Earlier this week, the administration revealed its plan to revoke Intel and Qualcomm's export license to supply semiconductors to Chinese firm Huawei. If China chooses to retaliate, they could target Tesla or continue to reduce US agricultural exports of corn and soybean.
China's Response
Chinese Foreign Ministry spokesperson Lin Jian criticized the United States for continuing to politicize economic and trade issues. He stated that increasing tariffs would only add insult to injury.
Trump's Promises and Warnings from Senator Chuck Grassley
If reelected, Trump has pledged to impose a 60% tax on all Chinese imports, which he describes as a tsunami of tariffs. US Senator Chuck Grassley, a Republican from Iowa, warned that Beijing would likely respond.
Market Reactions
In response to the news, shares of Chinese solar firms decreased, and the yuan weakened in both onshore and offshore markets. Wall Street analysts have shared their perspectives on the potential impact of the tariffs.
Political Strategy and Public Opinion
As Biden's polling data continues to decline, the administration's decision to intensify the trade war with China could be a new strategy to regain voters' support. However, this approach is unlikely to be successful.
What are your thoughts on this matter?
This article provides a comprehensive overview of the anticipated tariffs on China's EVs and their potential implications. What are your thoughts on this matter? Feel free to share this article with your friends and engage in a discussion. Don't forget to sign up for the Daily Briefing, which is scheduled for 6 pm every day.
