Biden’s electric car tariffs won’t stop the ‘bloodbath’

President Joe Biden moved last week to initiate a series of heavy new tariffs designed to protect his favored industries from Chinese encroachment. The move came following the completion of a review conducted under Section 301 of the 1974 Trade Act that enables the executive branch to retaliate against what it deems to be unfair trade practices. 

“American workers can outwork and outcompete anyone as long as the competition is fair,” Biden said in a White House Rose Garden announcement. “But for too long, it hasn’t been fair. For years, the Chinese government has poured state money into Chinese companies ... it’s not competition, it’s cheating.”

Many of Biden’s higher tariffs are designed to protect US makers of electric vehicles. (EVs). Among other provisions, the new tariffs raise the tax on Chinese-made electric cars from 27.5 per cent to 102.5 per cent, an almost four-fold increase. Tariffs on some Chinese steel and aluminum imports will rise to 25 per cent this year, as will the tariff for lithium-ion EV batteries.