The Biden administration is raising tariffs on $18 billion worth of imports from China. The plan includes increasing tariffs on electric vehicles from 25% to 100% and on semiconductors from 25% to 50%.
In an exclusive interview with Yahoo Finance, President Biden said China is “basically taking over our entire industry” and will “pay whatever it takes” to saturate the market with its products. Biden has said the new tariffs are aimed at saving American jobs. Regarding EVs, for example, Biden told Yahoo Finance Editor-in-Chief Brian Sozzi that China is “flooding the market with incredibly cheap EVs. They’re not making a dime on electric vehicles (and) their intentions are “We are doing this to sell electric vehicles in a more sustainable manner.” Others are out of business. Ultimately, he says, the new tariffs are meant to be “fair.”
Biden expects China to talk about retaliation, but thinks the actual response will be minimal. “They’ll probably look for ways to raise tariffs on products that are probably unrelated.”
Part of Biden’s struggle is the fact that Americans remain dissatisfied with stubbornly high inflation, which has risen nearly 20% since he took office. Biden acknowledged that “people are just worried” about the economy at the moment, but added that he intends to “stay steady and stay the course,” adding that “it’s going to take a little bit more time.” Ta.
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