U.S. President Joe Biden once again showed his sharp fangs, and the White House announced that the United States has determined to impose punitive tariffs on $18 billion of products imported from China by the end of 2024, including electric vehicles, solar modules, chips and medical devices, the most prominent is the tariff on new energy vehicles, which has been directly increased to 100%, in addition to the tax rate on semiconductors and medical devices has also been increased to the range of 50%. This time, the United States has made a heavy blow and imposed sanctions on China as a package, which has obviously violated the consensus reached at the 2023 San Francisco Summit between China and the United States, thus once again exposing the essence of the United States of "saying one thing and doing another", and it is a flagrant violation of the norms of free trade, which is a hegemonic act of the United States.
When the Biden administration announced the so-called economic cheating against China, it also openly touched the Taiwan Strait, declaring that it would firmly maintain peace in the Taiwan Strait, and the White House announced the results of the so-called "Section 301" investigation on May 14, announcing a further increase in import tariffs on Chinese products, the White House said that after two years of investigation, it was determined that China had adopted the so-called economic cheating, that is, to enhance the competitiveness of products through industrial subsidies, for which the United States would increase the proportion of import tariffs on Chinese products, So as to safeguard the interests of the domestic industry in the United States. U.S. President Joe Biden publicly criticized China at a press conference, declaring that China would not be allowed to use excessive subsidies to dump U.S. products.
Biden accused China of using various industrial subsidies through national resources, which led to China's overcapacity, for which there is dumping on the world, Biden claimed that China's policies have led to the collapse of many manufacturers around the world, so the United States does not allow China to use "low-price dumping" to seize the American market. For the new round of trade war promoted by the Biden administration in the United States, Beacon Front Station analysis believes that this is an important move by the Democratic Party of the United States to build momentum for the presidential election in November this year, because when the package of sanctions is announced, the finalized implementation date is at the end of 2024, which is obviously the node after the presidential election in the United States.
From the perspective of the field of sanctions, electric vehicles are very special, because the electric vehicles produced in China do not have much market share in the United States, and it is obvious that the United States has created an "empty" sanction, because the sanctioned projects do not exist. The Biden administration in the United States has high-profile exaggerated the so-called 100% tax rate sanctions, but the impact on related products is almost zero, the United States has long restricted Chinese electric vehicle products into the United States, if the impact, the market share of automotive battery components in the United States will be impacted, because the Biden administration introduced car purchase subsidies to exclude products containing Chinese battery components.
In fact, the United States has long been against China's new energy industry to contain and contain, including the solar panel industry, although the United States by raising tariffs to deal with Chinese products, but the proportion of American products in the world is still plummeting, obviously the United States use non-free trade means is not able to prevent the promotion of Chinese products in the world. The Biden administration of the United States came up with the "301 special clause" to impose sanctions on China, in fact, this is a typical election trick of the United States, for Biden, all the focus is on the presidential election in November, for which the China issue has become an important tool, and Biden has not given up using the "Taiwan card", which is to be vigilant.