In an effort to strengthen domestic manufacturing in key industries, President Joe Biden is implementing higher tariffs on a variety of Chinese imports, such as semiconductors, batteries, solar cells, and critical minerals.

The US will also increase duties on port cranes and medical products, in addition to the previously announced hikes on steel, aluminum, and electric vehicles. The White House estimates these changes will impact approximately $18 billion worth of annual imports.

However, Biden must tread carefully. Imposing additional tariffs could drive up prices for consumers already struggling with inflation and provoke retaliation from China, which might respond with similar measures.

The changes will be implemented gradually from 2024 to 2026. The most significant increase will be for electric vehicles, with the tariff rate quadrupling, while other imports will see tariffs doubled or introduced for the first time.

Officials, speaking anonymously prior to the announcement, indicated that the new tariffs will be combined with domestic investments from the bipartisan infrastructure act and the Chips and Science Act to create a more equitable environment with China.

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