Washington increases tariffs on $18 billion in Chinese products

These new customs duties concern nearly ten industrial sectors considered “strategic”, such as semiconductors, critical minerals, medical products and even electric vehicles.

The White House announced on Tuesday, May 14, a marked increase in customs duties applied to the equivalent of $18 billion in Chinese products, in order to “protect American businesses and workers” of a competition judged “disloyal” by Washington.

These new customs duties concern nearly ten industrial sectors considered to be “strategic”such as semiconductors, critical minerals, medical products or even electric vehicles, the latter for example seeing their customs duties increase from 25% to 100%.

The day before, the American Secretary of the Treasury, Janet Yellen, had stressed the need for the White House to “ensure that the stimulus provided by the IRA [le grand plan vert voté il y a un an] to support these industries, that these investments be protected.”

The American government has in fact invested more than 860 billion dollars, via the IRA, in order to accelerate the production of electric cars, vehicle batteries but also solar panels or wind turbines “made in America”.

But Washington accuses Beijing of strongly supporting its industries, with significant subsidies which lead to overproduction that Chinese companies sell on the world market by undercutting prices, thereby preventing the development of competing industries in other countries.

These customs duties therefore aim to “eliminate unfair commercial practices, whether concerning technology transfer, intellectual property or innovation”justified the White House in its press release.