Finance Knuggets

May 26, 2024

I recently heard that the Biden administration has announced increased tariffs on various Chinese goods as part of the ongoing US-China trade war. This move is seen as a way to protect American industries and prevent Chinese goods from flooding the US market. The tariffs target key sectors such as cleantech, including electric vehicles and solar panels, as well as batteries and other “national security” industries.

The aim of the tariffs is to incentivize domestic production and reduce dependence on Chinese imports, particularly in the electric vehicle and utility-scale battery sectors. The increase in tariffs on Chinese batteries, permanent magnets, and natural graphite reflects a wider trend of protectionism, with a focus on reducing reliance on Chinese imports in critical industries.

However, the impact of these tariffs on the US battery supply chain remains to be seen, as the domestic industry will need to ramp up production to replace current Chinese imports and meet the growing demand for cleantech deployment. Additionally, there is a concern about potential retaliatory measures from China and the impact on domestic manufacturing productivity.

Overall, the announcement of increased tariffs on Chinese goods reflects a broader effort to protect and promote American industries in the face of increased competition from China. The ongoing trade tensions between the US and China continue to have significant implications for global trade and economic relations.

Stay Well!