US increases customs duties on China in many sectors

Accusing China of engaging in unfair trade practices regarding technology transfer, intellectual property rights, and entrepreneurship, and of flooding global markets with artificially low-priced products, the US has announced a series of new measures, including the imposition of a 100 percent customs duty on Chinese-made electric vehicles.

While the White House stated that these measures are intended to protect American workers and businesses, China announced that it would protect its own interests against the massive customs duties.

In a statement released by the Chinese Ministry of Commerce, it was stated that trade barriers would also affect relations between the two super-economic powers.

The decision came after months of criticism from Biden’s rival in the White House race, former President Donald Trump, who claimed that Chinese-made electric vehicles would destroy the US automotive industry.

A statement released by the White House indicated that the plan announced today would cover 18 billion dollars worth of imports from China.

The US will increase the customs duty on China-origin electric vehicles from 25 percent to 100 percent this year, the duty on solar panels from 25 percent to 50 percent, and the duties on certain aluminum and steel products from 7.5 percent to 25 percent.

The US will also increase the duty on semiconductors from 25% to 50% by 2025. Additional customs duties at similar rates will also be imposed on electric vehicle batteries, chips, and medical products imported from China.

''THIS STEP WILL HAVE SERIOUS EFFECTS ON THE ATMOSPHERE OF BILATERAL COOPERATION...''

The Chinese Ministry of Commerce announced that they are firmly opposed to the additional customs duty applications announced by the White House.

In the statement released by the ministry, it was said, “The increase in customs duties is contrary to President Joe Biden’s commitments to “avoiding the containment and suppression of China’s development” and “avoiding decoupling and breaking ties with China.” This step will have serious effects on the atmosphere of bilateral cooperation.”

Chinese Foreign Ministry Spokesperson Wang Wenbin told reporters, “China is against the unilateral step of increasing customs duties, which violates World Trade Organization rules, and will take all necessary steps to protect its legitimate rights.”

News Source: İHA