Tariff Increase by the U.S. Against China Widely Criticized! U.S. Media Concerns that American Consumers Will Bear the Ultimate Cost

 

Date：[2024/5/16]
 

"For a period of time, the United States has frequently imposed unilateral sanctions on China, abused the 301 tariff, and almost crazily suppressed China's normal economic, trade, and technological activities. This is the most typical hegemonic bullying in the world today! It shows that some people in the United States have lost their rationality in order to maintain their unipolar hegemony." Wang Yi, a member of the Political Bureau of the Communist Party of China Central Committee and Minister of Foreign Affairs, responded to relevant questions on the 15th. On the 14th, the United States released the results of a four-year review of the 301 tariff imposed on China, announcing that on the basis of the original 301 tariff, it will further impose tariffs on imported electric vehicles, lithium batteries, photovoltaic cells and other products from China. The news has spread that the Biden administration's move has been continuously criticized by multiple parties. According to American media reports, the American public is concerned that the ultimate cost of imposing tariffs may be borne by American consumers. In addition, the Biden administration has always placed climate change at the core of its political agenda, and public opinion generally believes that imposing tariffs on China by the United States and Canada will not contribute to the prosperity of its own industries, nor will it be conducive to the United States' efforts to address climate change. According to American media analysis, Biden's latest "turn" has exposed a core dynamic in current US trade policy, where leaders of both parties are competing to stand firm and erect trade barriers against China in order to gain more votes before the November election. The Wall Street Journal of the United States has warned that the already initiated "tariff bidding war" between Biden and his predecessor Trump will not have a good outcome for anyone.
Europe opposes trade wars
On the afternoon of the 14th, Biden said in a speech at the White House that he will not allow Chinese made electric vehicles to enter the US market, making it impossible for American car manufacturers to "compete fairly.". "The future of electric vehicles will be manufactured by union workers in the United States, and I will do so by complying with international trade laws," Biden said. "Our partners around the world are also considering similar things. They also hope that the supply chain of electric vehicles will not be dominated by China's unfair trade practices."
US President Biden announced in his speech at the White House that he will impose additional tariffs on China
On the 14th local time, US President Biden announced in a speech at the White House that he would impose additional tariffs on China. (Visual China)

"Germany and Sweden have a cold attitude towards imposing tariffs on Chinese electric vehicles," according to Agence France Presse on the 14th. Swedish Prime Minister Christensson said after a meeting with visiting German Prime Minister Scholz, "In terms of (imposing) tariffs, we unanimously believe that disrupting global trade is a bad idea." Christensson said, "You should not be naive - procurement may be interrupted for various reasons, and we have sufficient reasons to demand a fair competitive environment, but a broader trade war will lead us to block each other's products, which is not the path that industrial countries such as Germany and Sweden should take."
On the 14th, shortly after the Biden administration announced the imposition of tariffs on China, US Treasury Secretary Yellen claimed in an interview with Public Broadcasting System (PBS) that the imposition of tariffs would protect American businesses and workers and would not cause an increase in US prices. Yellen also claimed that he hoped China would respond in a "rational way".
However, the PBS host sharply questioned in an interview, "The prices of electric vehicles in China are cheaper. If more (American) people buy them, wouldn't it be very helpful to solve the problem of climate change?" "Isn't this (imposing tariffs on China) going against President Biden's overall goal of addressing climate change?" Yellen chose to be vague and shifted the focus to promoting policies for the development of the electric vehicle industry in the United States, talking about the so-called "benefits" of protectionist policies such as the Two Party Infrastructure Act for American consumers, claiming that as American companies continue to accumulate experience in electric vehicle production, their prices will gradually decrease. The US technology website "Wired" commented that the US government's tariff decision reflects an unfortunate paradox: on the one hand, the US hopes to develop sustainable energy, while on the other hand, it is blocking imports from a country where sustainable energy is well developed.
On the 15th, Wang Yi held the 5th China Pakistan Foreign Ministers Strategic Dialogue with Pakistani Deputy Prime Minister and Foreign Minister Dahl in Beijing, and during a joint meeting with reporters, he expressed that the United States is using all means to suppress China, which does not prove the strength of the United States. Instead, it exposes that the United States has lost confidence and is in a disorderly position; It cannot solve the problems existing in the United States itself, but instead will further disrupt the normal operation of the international supply chain; This cannot prevent China's development and revitalization, but instead will inspire 1.4 billion Chinese people to work harder and become stronger.
American consumers bear 92% of the cost of imposing tariffs on China
"Welcome to the Sarajevo incident of the global green trade war." Under the pretext of so-called "unfair trade behavior" by China, Biden announced the imposition of tariffs on Chinese electric vehicles and other goods. The Wall Street Journal stated in an editorial on the 14th that this move will definitely disrupt the supply chain of American companies and increase costs for American consumers and businesses. Chinese Foreign Ministry spokesperson Wang Wenbin introduced at a regular press conference on the 15th that according to Moody's calculations, American consumers bear 92% of the cost of imposing tariffs on China, and American households spend an additional $1300 per year. The Nihon Keizai Shimbun said on the 15th that the basis for the US to increase tariffs was unclear because there were almost no Chinese made electric vehicles sold in the US. According to WTO rules, if additional tariffs are imposed through "offsetting measures" like this time, it is necessary to prove that domestic industries have suffered substantial damage.
On the 14th, Craig Allen, President of the National Committee on US China Trade, emphasized in a statement that maintaining tariffs and additional taxes during the Trump era would "ultimately make it more difficult for American businesses to maintain their competitiveness both domestically and internationally, leading to a decrease in US employment opportunities. Against the backdrop of sustained inflationary pressures, this would also raise the US Consumer Price Index." Blake Harden, Vice President for International Trade at the Association of Retail Industry Leaders in the United States, said, "Widely imposing tariffs is not strategic and will hinder US economic growth." He believes that this will ultimately "hinder American businesses seeking to compete globally and have a negative impact on the wages of American workers.".
The Associated Press reported that Colorado Governor Jared Polis, who is also a Democrat, stated on social media platform X that imposing tariffs on solar cells and other products is "terrible news for American consumers and a major setback for clean energy.". He wrote, "Tariffs are cumulative taxes directly levied on Americans, and this tax increase will hit every household." The report states that the so-called cumulative tax, which means the wealthier, the less tax pressure there is. According to reports, there are over 64000 people working in the clean energy industry in Colorado.
Meng Deshi, founder and CEO of MCM Holding Group in the United States, told Global Times on the 15th that using tariffs as a protectionist measure and creating trade conflicts is not the right path for US China relations. History has proven that punitive tariffs will ultimately not work. Mendes said that such behavior will only make American consumers pay more and heavy import tariffs, thereby exacerbating inflation. "The White House's decision will lead to China's tit for tat response and more intense trade conflicts."
"The race to the abyss of protectionism"
During his tenure, former US President Trump used Section 301 to impose punitive tariffs on Chinese imports worth billions of dollars in 2018. According to Reuters, Trump attended the "sealing fee" trial in New York on the 14th local time. In an interview with reporters outside the court, he claimed: "They (the Biden administration) must also take this measure against other types of cars, they must take this measure against many other goods." In addition, Trump criticized Biden for not taking more action against imported goods from China earlier.
On the 15th, Chinese Assistant Foreign Minister and Spokesperson Hua Chunying posted a comparison chart on social media platform X of the contradictions between Biden's remarks on increasing tariffs, accompanied by an article stating, "A Lesson on Tariffs in 2019.". In June 2019, Biden criticized Trump's move to impose tariffs on Chinese imports on social media platforms: "Trump didn't even understand the most basic principles. He believed that (this) was making China pay for tariffs. But any new economics student would tell you: Americans are paying for it. The cashiers at Target (a well-known American retailer) know what happened - they understand economics better than Trump." On May 14, 2024, Biden posted, "I just announced a series of tariffs on goods made in China: 25% for steel and aluminum, 50% for semiconductors, and electric." "100% for automobiles and 50% for photovoltaic cells. China is determined to lead these industries, and I am determined to ensure that the United States leads the world in these areas."
The New York Times reported that Biden had previously promised to abolish at least some of the tariffs from the Trump era, but he now calls for a tough stance on China to attract swing voters in the Midwest and other regions, refusing to give up any territory to competitors. These measures also reflect that Trump's disregard for consensus and trade confrontation with China are becoming the policy foundation for Biden, while also focusing on industries of strategic importance to the United States, such as clean energy and semiconductors.
On the 14th, Pacard, a researcher at the Keito Institute, a think tank in the United States, wrote that the Biden administration's new tariff policy is "terrible" and once again prioritizes its political objectives over national interests. It is a "race to the abyss of protectionism" with its rival Trump. A recent poll conducted by The Wall Street Journal shows that among the seven most fiercely contested swing states in the 2024 election, Trump leads Biden in six states due to widespread dissatisfaction with the national economy and deep doubts among voters about Biden's abilities and job performance.