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Biden Announces Tariff Hikes on Chinese Goods, EV Sector Targeted

Biden announces tariff hikes on Chinese goods, including EVs, drawing criticism. U.S. auto stocks rise.

President Biden is set to announce increased tariffs on Chinese goods, with a focus on electric vehicles (EVs) and associated industries.

Highlights:

  • Biden to increase tariffs on Chinese goods, especially EVs.
  • Former President Trump criticizes Biden’s move, advocates for higher tariffs.
  • U.S. auto stocks, including Tesla, Ford, and GM, see gains amid tariff news.

The Biden administration is gearing up to announce significant tariff increases on Chinese imports, particularly targeting the electric vehicle (EV) sector. These measures, aimed at defending American workers and safeguarding the U.S. market against subsidized Chinese products, will see tariffs on Chinese EVs potentially surge from 27.5% to 102.5%. Other sectors like batteries, solar cells, steel, and aluminum will also experience tariff hikes, albeit at varying rates. The move reflects a shift in trade policy and underscores efforts to address perceived trade imbalances.

Response from Former President Trump and Auto Stocks

Former President Donald Trump has criticized President Biden’s tariff hikes, arguing that such actions should have been taken earlier. He highlighted potential loopholes, such as Chinese companies manufacturing cars in Mexico to evade U.S. tariffs under the US-Mexico-Canada Agreement. Trump advocated for higher tariffs, including a proposed 60% tariff on all Chinese goods. However, the Biden administration has shown reluctance, possibly due to concerns about inflationary pressures.

Meanwhile, U.S. auto stocks, including Ford, Tesla, and General Motors, witnessed notable gains in response to the tariff news. Tesla’s stock rose by 3.27%, despite facing a year-to-date decline. Ford and General Motors also experienced increases of 3.06% and 3.42%, respectively. These fluctuations underscore the sensitivity of the automotive industry to trade policy shifts and highlight companies’ strategic responses to evolving trade dynamics.

SourceTokenist

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