What's behind Washington's new tariffs on Chinese imports

Editor's note: Bradley Blankenship, a special commentator on current affairs for CGTN, is a Prague-based American journalist, political analyst, and freelance reporter. The article reflects the author's opinions and not necessarily the views of CGTN.

The Biden administration's decision to impose a fresh round of tariffs, targeting a substantial $18 billion in Chinese imports, is poised to further unsettle the already strained Sino-American relationship. The products in the crosshairs are not just any goods but a crucial list of items, including steel, aluminum, semiconductors, electric vehicles (EVs), lithium batteries and personal protective equipment, all of which play a significant role in both economies. 

The hikes are nothing short of drastic. Tariffs on Chinese EVs rocketed from 25 percent to a staggering 100 percent, while solar cells saw their import taxes double from 25 to 50 percent.

In a statement, the White House said that "China's unfair trade practices concerning technology transfer, intellectual property, and innovation are threatening American businesses and workers. China is also flooding global markets with artificially low-priced exports."

This escalation comes against the backdrop of lingering tariffs from the previous administration's Section 301 playbook, marking a potentially combustible continuation of tariff warfare. Critics argue this move flies in the face of U.S. President Joe Biden's pledges to avoid hamstringing China's development or pushing for decoupling. It's seen as a sharp jab at the hard-won consensus between the two nations' leaders, possibly signaling the opening salvo of a fresh tariff tussle.

The U.S. has been vocal about its concerns regarding Chinese tech and goods, a move that some view as an attempt to justify the tariffs. However, the legitimacy of these tariffs is a subject of debate, particularly in light of previous WTO rulings against similar measures. Accusations of "forced technology transfer" and "intellectual property theft" are weak justifications for protectionism, which are political slogans rather than concrete accusations.

The accusation of "overcapacity" in Chinese industries has similarly been debunked, with the label slapped on products where the U.S. is clearly lagging. On the contrary, opening up U.S. markets would restore balance and meet American demand for new energy products. Despite the tough talk, some argue the practical impact of these tariffs on Chinese industries might be minimal, with the Biden administration's grandstanding painted as a politically motivated gambit aimed at securing votes in an election year.

As Bloomberg noted in a report before the tariffs were announced, Chinese EV makers are not dependent on American consumers, nor are firms in the solar power sector. "Existing tariffs locked Chinese autos out of the U.S. market years ago, while solar firms mostly export to the U.S. from overseas, avoiding similar curbs," the outlet noted.

One particularly confounding move is the hefty tariffs slapped on personal protective equipment from China, especially considering China's pivotal role in aiding the U.S. during the COVID-19 pandemic. Additionally, the tariffs seem immediately counterintuitive, given that major U.S. EV firms like Tesla and Ford have a significant amount of components originating from China.

However, Biden's statement that the U.S. will work with allies "to strengthen cooperation to address shared concerns about China's unfair practices" implies that these tariffs may be a signal for other countries or blocs, such as the EU. It is anticipated that the G7 will take up the issue of Chinese competition at a summit in Italy next month.

Washington imposing duties on Chinese EVs could pressure the EU to raise tariffs, given that it is already reviewing Beijing's trade practices. And such a precedent has already been established with semiconductors, in particular. But, as CNN reports, these could never match Washington's and could only feasibly max out at 30 percent – far less than required to tip the scale in favor of domestic manufacturers. Such tariffs could also blow back on European firms that manufacture in China and then sell on to Europe.

In any case, such tariffs violate China's legitimate rights to development and are anti-competitive. In the end, consumers will be the only ones who suffer as a result of these policies. Disruptions to the supply chain will fall on American consumers, who are already reeling back spending thanks to biting inflation. It will also slow the rollout of green technology to the masses, impeding the global fight against climate change. 

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