(The Center Square) – An industry expert says, in the end, consumers will pay more as a result of Chinese tariffs put in place by the Biden administration.
The administration recently announced a variety of new tariffs on Chinese imports such as steel and aluminum, semiconductors, batteries and medical equipment. U.S. Treasury Secretary Janet Yellen told a news briefing that President Joe Biden’s new tariffs are aimed at protecting American-made electric vehicles, solar energy products and semiconductors from so-called excess Chinese capacity.
China immediately vowed retaliation. Its commerce ministry said Beijing was opposed to the tariff hikes and would take measures to defend its interests.
“Even though the administration said the tariffs are for China, in the end these 25% tariffs are being paid by the importers who import the products and the cost is just passed down to the consumers,” said Robert Um, National Operations Performance manager with Customs Brokerage at OEC Group in Chicago.
Other products have risen in price because of tariffs. In a letter sent to Biden in May, major shoe brands, including Nike and Adidas, urged the Biden administration to lift the tariff’s put in place by then President Donald Trump.
Critics have said the EV-related tariffs could slow Biden’s green energy agenda. The Environmental Protection Agency issued tailpipe pollution standards in April designed to drive the share of electric vehicles up from 8% last year to as much as 56% by 2032. Without access to lower-cost batteries and other materials made in China, EVs will be too expensive for mainstream U.S. consumers, automakers have said.
“This policy will increase costs for consumers, dramatically strain the U.S. electric grid, contribute to more traffic and congestion on roads, undermine our energy independence, and impact every sector of the U.S. economy,” said Rich Moskowitz, general counsel for American Fuel and Petrochemical Manufacturers.
The Illinois Corn Growers Association has joined a coalition of agricultural and oil industry representatives to sue the EPA for what they said is its inequitable and costly electrification of America’s vehicle fleet.
