US Weighs Tariffs on Chinese Electric Vehicles, Other Goods

(Bloomberg) -- President Joe Biden’s administration is weighing a tariff increase on Chinese electric vehicles and other goods in an effort to make US clean-energy products more competitive, according to people familiar with the matter. 

Officials from the White House and various Cabinet agencies have been discussing whether to hike duties on certain Chinese exports, the people said. The talks are part of years-long deliberations that began shortly after Biden took office. 

Some in the administration would like the debate to conclude early next year, according to the people, who spoke on condition of anonymity to describe private deliberations. 

The Wall Street Journal reported earlier on the discussions. 

White House Press Secretary Karine Jean-Pierre said the discussions are part of a legally mandated review of China tariffs. She would not say when the administration will conclude them.

“We are taking a strategic, thoughtful, deliberative approach to our bilateral economic and trade relationship with China, and that certainly applies to our review of these tariffs,” she said Thursday.

Biden left in place tariffs on around $300 billion on Chinese goods imposed by President Donald Trump. Biden’s administration launched a review of the tariffs nearly three years ago, but internal divisions have prevented his team from arriving at a consensus on tariff policy. 

Tariff levels have remained unchanged as Biden pursued a thaw in US-China relations with President Xi Jinping, culminating in a meeting last month outside San Francisco in which they agreed to curb illicit fentanyl trafficking and restore military-to-military communications.

Raising tariffs further on Chinese electric vehicles could have a minimal impact on the US market. The vehicles are already subject to a 25% duty, which has hampered Chinese companies from making inroads with American consumers. 

In a sign of increasing competition on clean energy, China on Thursday announced a fresh export ban on rare-earth mineral processing technology. That move could make it harder for the US and its allies to increase supply of raw materials needed for batteries and other technology.

(Adds comments from White House in fifth paragraph)

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