The United States has imposed tariffs on China, and many parties have refuted it! U.S. media: The public is worried that the ultimate cost will be borne by American consumers

Source: Global Times

"For a period of time, the United States has frequently imposed unilateral sanctions on China, abused Section 301 tariffs, and almost frantically suppressed China's normal economic, trade, and scientific and technological activities. This is the most typical bullying in the world today! This shows that some people in the United States have lost their minds in order to maintain their unipolar hegemony. Wang Yi, member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs, said this in response to relevant questions on the 15th. On the 14th, the United States released the results of the four-year review of the additional 301 tariffs on China, announcing that on the basis of the original 301 tariffs on China, it will further impose tariffs on electric vehicles, lithium batteries, photovoltaic cells and other products imported from China. The Biden administration's move continues to be criticized by many parties. According to US media reports, the American people are worried that the final cost of tariffs may be borne by American consumers. In addition, the Biden administration has always put the issue of climate change at the center of its political agenda, and public opinion generally believes that the US tariffs on China will not help the prosperity of its own industry, let alone the US efforts to address climate change. According to US media analysis, Biden's latest "pivot" has exposed a core dynamic of the current US trade policy, that is, the leaders of the two parties are competing to erect trade barriers against China in order to win more votes before the November election. The Wall Street Journal warned that the "tariff bidding war" already provoked between Biden and his predecessor Trump "will not end well for anyone."

Europe opposes the trade war

In his speech at the White House at noon on the 14th, Biden said that he would not allow Chinese-made electric vehicles to flood the U.S. market, making it impossible for U.S. automakers to "compete fairly." "The future of electric vehicles will be made in the U.S. by union workers, and I will do that by complying with international trade laws." "Our partners around the world are making similar considerations," Biden said. They also hope that the supply chain of electric vehicles will not be dominated by China's unfair trade practices. ”

On the 14th local time, U.S. President Joe Biden announced in a speech at the White House that tariffs would be imposed on China. (Visual China)

"Germany and Sweden are indifferent to imposing tariffs on Chinese electric vehicles", according to a report by AFP on the 14th, Swedish Prime Minister Christersson said after talks with visiting German Chancellor Scholz on the same day: "As far as (imposing) tariffs are concerned, we agree that it is a bad idea to undermine global trade." "You shouldn't be naïve – purchases can be disrupted for a variety of reasons, and we have good reason to demand a level playing field, but a broader trade war would have us blocking each other's products, which is not the path that industrial countries like Germany and Sweden should take," Christersson said. ”

On the 14th, shortly after the Biden administration announced tariffs on China, U.S. Treasury Secretary Yellen claimed in an interview with PBS that the tariffs would protect U.S. businesses and workers and would not cause prices to rise in the United States. Yellen also declared that she hoped China would respond in a "rational way."

However, the PBS host asked sharply in the interview: "Wouldn't it go a long way in solving the problem of climate change if more people bought electric cars in China if they were cheaper?" "Isn't this [the tariffs on China] contrary to President Biden's broader goal of tackling climate change?" Yellen chose to be vague and shifted her focus to the U.S. policy propaganda for the development of the electric vehicle industry, talking about the so-called "benefits" of protectionist policies such as the Bipartisan Infrastructure Act to American consumers, and claiming that as American companies gain experience in electric vehicle production, their prices will gradually fall. The U.S. technology website "Wired" commented that the U.S. government's tariff decision reflects an unfortunate paradox: on the one hand, the U.S. wants to develop sustainable energy, and on the other hand, it is blocking its own imports from a country that has developed sustainable energy well.

Wang Yi said at a joint press conference with Pakistani Deputy Prime Minister and Foreign Minister Dhar after the fifth China-Pakistan Foreign Ministers' Strategic Dialogue in Beijing on the 15th that the US unscrupulous suppression of China does not prove that the US is strong, but rather exposes that the US has lost its self-confidence and is out of order. It will not solve the problems of the United States itself, but will cause further damage to the normal operation of the international production and supply chain; This will not stop China's development and revitalization, but will inspire the 1.4 billion Chinese people to work harder.

U.S. consumers bear 92 percent of the cost of imposing tariffs on China

"Welcome to the Sarajevo event of the global green trade war." Under the pretext of the so-called "unfair trade practices" of China, Biden announced tariffs on Chinese electric vehicles and other goods, and the Wall Street Journal said in an editorial on the 14th that this move will definitely disrupt the supply chain of American companies and increase costs for American consumers and enterprises. Chinese Foreign Ministry spokesman Wang Wenbin said at a regular press conference on the 15th that according to Moody's estimates, American consumers bear 92% of the cost of imposing tariffs on China, and American families spend an additional $1,300 per year. The Nihon Keizai Shimbun said on the 15th that since there is almost no sales of Chinese-made electric vehicles in the United States, the basis for the additional tariffs by the United States is not clear. According to WTO rules, if additional tariffs are imposed by "offsetting measures", as in this case, it will be necessary to prove that the domestic industry has been substantially injured.

Craig Allen, chairman of the U.S.-China Business Council, issued a statement on the 14th stressing that maintaining Trump-era tariffs and imposing additional taxes "will ultimately make it more difficult for U.S. companies to maintain their competitiveness at home and abroad, resulting in fewer jobs in the United States." Against the backdrop of persistent inflationary pressures, this will also pull up the US consumer price index. Blake Harden, vice president of international trade at the Association of Retail Leaders, said: "Broad tariffs are not strategic and will hinder U.S. economic growth. This, he argued, would ultimately "create a hindrance to U.S. businesses that seek to compete globally and negatively impact the wages of U.S. workers."

Colorado Gov. Jared Polis, also a Democrat, said on social media platform X that tariffs on solar cells and other products "are terrible news for American consumers and a major setback for clean energy," according to the Associated Press. "The tariffs are a regressive tax levied directly on Americans, and this tax increase will hit every household," he wrote. According to the report, the so-called regressive tax refund, that is, the richer you are, the less tax pressure there is. More than 64,000 people in Colorado work in the clean energy industry, according to the report.

Montes, founder and CEO of MCM Holding Group, told the Global Times on the 15th that using tariffs as a means of protectionism and creating trade conflicts is not the right path for US-China relations. History has shown that punitive tariffs will not work in the end. Such behavior will only exacerbate inflation by making American consumers pay more and onerous import tariffs, Mr. Mondez said. "The White House's decision will lead to a-for-tat response from China and a more intense trade conflict."

"The race to the abyss of protectionism"

Former U.S. President Donald Trump used Section 301 to impose punitive tariffs on hundreds of billions of dollars worth of Chinese imports in 2018. According to Reuters, Trump attended the "hush money" trial in New York on the 14th local time, and he claimed in an interview with reporters outside the courtroom: "They (the Biden administration) must also take this measure on other types of cars, and they must take this measure on many other goods." In addition, Trump criticized Biden for not taking more action on imports from China earlier.

Hua Chunying, assistant minister and spokesperson of China's foreign minister, posted a comparison chart of Biden's inconsistent remarks on tariffs on the social platform X on the 15th, with a caption saying, "A lesson on tariffs in 2019". In June 2019, Biden slammed Trump's move to impose tariffs on Chinese imports in a post on social media platforms: "Trump didn't even understand the most basic truths. He believes that [this move] is making China pay for the tariffs. But any new economics student will tell you: Americans are paying the bill. The cashiers at Target (a well-known American retailer) know what's going on – they know the economy better than Trump. And Biden issued a document on May 14, 2024, saying, "I just announced a series of tariffs on goods made in China: 25% for steel and aluminum, 50% for semiconductors, 100% for electric vehicles, and 50% for photovoltaic cells." China is determined to dominate these industries, and I am determined to ensure that the United States leads the world in these areas. ”

Biden has previously promised to repeal at least some of the Trump-era tariffs, but he is now calling for a tough stance on China to appeal to swing voters in the Midwest and beyond, refusing to cede any turf to rivals, according to the New York Times. The measures also reflect the fact that Mr. Trump's trade confrontation with China, which defied consensus, is becoming the basis of Biden's policy, as well as his focus on industries of strategic importance to the United States, such as clean energy and semiconductors.

Packard, a researcher at the Cato Institute, an American think tank, wrote on the 14th that the Biden administration's new tariff policy is "bad", once again putting its own political goals above national interests, and it is a "race to the abyss of protectionism" with its opponent Trump. A recent poll conducted by the Wall Street Journal shows that among the seven swing states with the most fierce competition in the 2024 election, Trump is ahead of Biden in six states, due to the widespread dissatisfaction of voters with the national economy and deep doubts about Biden's ability and work performance.

[Global Times special correspondent in the United States, Feng Yaren, Global Times reporter, Zhao Juehui, Global Times special correspondent, Zhen Xiang, Liu Zhi]