United States President Joe Biden has reportedly increased tariffs on Chinese electric vehicles, batteries, steel, solar cells, and aluminium, aiming to protect American manufacturers from unfair trade practices and prices and paving the way for a more competitive domestic market.
As per the report, the Biden-led US government has imposed a 100 per cent tariff on electric vehicles, a 50 per cent tariff on semiconductors, and a 25 per cent tariff on electric vehicle batteries from China.
Addressing the nation from the White House, Biden said China should not be allowed to control the United States automobile market. He rather seeks fair competition with China.
The President alleged that over the years, the Chinese government poured money into a wide range of industries, including aluminium and steel, semiconductors, electric vehicles, solar panels, and health equipment, bringing production to a superfluous level and dumping the surplus onto the market at unfairly low prices.
In the same event, Joe Biden proudly announced that American companies are stepping up and investing tens of billions of dollars in electric vehicles and their batteries to boost the supply chain beyond the domination of unfair trade practices from China.
The increased tariffs are likely to cover about US$18 billion of trade.
Century Aluminum, a global primary aluminium producer with operations in the United States and Iceland, applauded Biden's decision to impose higher tariffs on Chinese imports under Section 301 of the Trade Act of 1974, stating that it would curb China’s continuing build-up of overcapacity and non-market pricing actions.
Jesse Gary, Century's (NASDAQ: CENX) President and Chief Executive Officer, who attended the White House event announcing the move, said: "Today’s actions are critical for the U.S. aluminum industry. President Biden's decisive leadership on Sec. 301 tariffs and to invest in the resurgence of U.S. manufacturing, shows this Administration’s commitment to U.S. primary aluminum production."
He added, "Thanks to the President's leadership, Century is planning to build a new greenfield facility that will double existing domestic capacity. The smelter would not only be the first new American aluminum smelter in 45 years, but also one of the “greenest” smelters in the world, powered with cutting edge technology and renewable energy. This Administration announced a $500 million grant which will help to facilitate this investment in our future.”
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