Tuesday, May 14, 2024

Interesting choice

President Biden will slap tariffs on $18 billion of imports of goods from China including electric vehicles, semiconductors, and medical products to protect the strategic sectors and punish China for unfair trade practices.

He will also keep in place the tariffs that former President Donald Trump had placed on more than $300 billion of imports from China.

  NPR
Every time Trump talks about tariffs, responses claim he's ignorant about how tariffs work - to increase prices of goods on US citizens.
The move comes as Biden pushes forward to implement three pieces of legislation that contain hundreds of billions of subsidies to boost the domestic manufacturing and clean energy sectors — and ahead of a presidential election where trade and jobs will again be an issue.

[...]

Some increases will take place this year. They include tariffs of:
  • 100% on electric vehicles, up from 25%
  • 50% on solar cells, up from 25%
  • 50% on syringes and needles, up from zero
  • 25% on lithium-ion batteries for electric vehicles, and
  • battery parts, up from 7.5%
  • 25% on certain critical minerals, up from zero
  • 25% on steel and aluminum products, up from a range of zero to 7.5%
  • 25% on respirators and face masks, up from zero to 7.5%
  • 25% on cranes used to unload container ships, up from 0%
Other hikes will be phased in, including:
  • 50% on semiconductors, up from 25%, by 2025
  • 25% on other lithium-ion batteries, by 2026
  • 25% on natural graphite and permanent magnets, up from zero, by 2026
  • 25% on rubber medical and surgical gloves, up from 7.5%, by 2026
[...]

"One of the challenges is once tariffs have been imposed, it is quite difficult politically to reduce them — because the affected industry tends to get used to them, like them, operate with them as baked into their plans," said Michael Froman, who was U.S. Trade Representative during the Obama administration.
Perhaps because they get to increase their prices and profits?
Trump now wants to go much further, laying plans for tariffs on electric vehicles coming from the U.S.’s largest trading partner — Mexico [- if it does not agree to halt the shipment of Chinese-made EVs into the U.S.]

[...]

“I will put a 200 percent tax on every car that comes in from those plants,” Trump said at a rally in New Jersey on Saturday, referring to his plans to impose trade restrictions on Chinese-made autos from Mexico.

[...]

Those plans contrast sharply with Biden’s more surgical approach to tariffs, which is expected to have only muted effects on the U.S. economy, since the U.S. imports relatively few electric vehicles or the other products subject to tariffs from China itself today.

[...]

Those close to Trump say he and informal policy advisers like his ex-trade chief Robert Lighthizer are actively planning to impose tariffs on cars from Mexico, if that country’s government — which will be in new hands after a June 2024 election — does not agree to stem the tide of cheap Chinese cars.

  Politico
Yes, it's a shame middle and lower class Americans can afford cars.

...but hey, do what you want...you will anyway.

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