US tariffs on China: what’s the real impact, and what could happen next?
- Analysts discuss how Beijing could respond to Washington’s latest trade offensive, and how the impact could have repercussions beyond China’s borders
- Foreign minister implores international community to stand against the US creating ‘new troubles for the world’
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US proposes new round of tariffs on China in latest trade war escalation
US President Joe Biden’s latest tariff increases on Chinese electric vehicles (EVs) and other goods may trigger similar actions from Europe and pace up a reshuffle of crowded industries inside China, according to experts in international relations.
And they expect that Biden’s decision, largely seen as being rooted in political motivations during an election year, could have big ripple effects, leaving China under threat of collective duties from the West amid industrial overcapacity concerns.
Washington’s proposal on Tuesday looks to raise tariffs on Chinese EVs from 27.5 per cent to 100 per cent. Other products affected included solar cells, semiconductors, batteries and aluminium products, with suggested duties ranging from 25-50 per cent.
Instead of immediate, substantial damage to affected sectors, given the relatively small amount of related exports to the US, Chen said “it’s more about the psychological impact – the tendency [for others] to follow suit”.
Wang Yiwei, a professor of international relations at Renmin University in Beijing, agreed that besides winning over voters in an election year, Biden’s latest move also sends a message to Europe, where President Xi Jinping recently paid a visit, that they “should follow us and not embrace China”.