16.05.2024
The US government has announced an increase in tariffs on $18 billion worth of Chinese imports, including electric vehicles and solar cells, marking a shift towards protectionism and industrial policy. This move adds to the existing tariffs on over $300 billion of Chinese goods established during the Trump administration. Senior economist Erica York warns that these tariffs could limit consumer choices and raise prices for green technology, potentially hindering the Biden administration's climate change efforts. The new tariffs are expected to reduce US output and cost jobs, with experts advocating for policies that promote investment and competition instead. China's Ministry of Commerce has criticized the tariff hike as counterproductive to bilateral cooperation, and US trade organizations have expressed disappointment, citing the negative impact on consumers and businesses amidst inflation. The tariff decision also plays into the political dynamics of an election year, with both Biden and Trump using China as a focal point in their campaigns.