Expert: US tariff increase on China is unpopular.
The news that Biden’s administration intends to impose high tariffs on China’s electric vehicles has aroused widespread discussion. It is reported that this policy may raise the current tariff from 25% to 100%, especially for electric vehicles, batteries, solar cells, steel and aluminum industries. This practice continues the extra tariff measures of Trump era, which had already made China’s electric vehicles face a high tariff of 27.5%. The analysis shows that this reflects the long-standing unequal treatment of China’s electric vehicle industry by the United States, and with the approaching of the election cycle, the relevant measures tend to intensify.
Facing the speculation about a new round of "trade war", US Treasury Secretary Yellen admitted that China might react strongly to the potential new tariffs, but she expressed her hope that China would not resist. However, Yellen’s expectations seem unrealistic, because China’s Foreign Ministry has made it clear that if the United States implements such measures, China will take necessary actions to safeguard its rights and interests in accordance with WTO rules, stressing that all tariffs imposed on China should be lifted.
The tough stance of China’s Foreign Ministry is in stark contrast to Yellen’s attempt to balance the contradiction between protectionist policies and international trade rules. The issue of "overcapacity" mentioned by Yellen in her previous discussion and her criticism of China’s subsidy policy were accused of double standards. When asked about America’s own massive subsidies, Yellen defended it as a necessary investment in key areas. This attitude was criticized by Hua Chunying on social media, who pointed out that the United States was essentially avoiding fair competition. Expert: It is unpopular for the United States to impose tariffs on China.
Historical experience shows that high tariff protection is not a panacea. Take the American steel industry as an example. Although anti-dumping and countervailing measures have been taken against foreign products including China for a long time, it is still difficult to avoid the decline within the industry, as shown in the case of American steel companies being acquired by foreign capital. This reflects that the core of the problem may lie in the competitiveness of the industry itself rather than external factors. Therefore, if the US auto industry continues to rely on high tariff barriers, its development prospects may be further worrying.
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