Biden hits China with additional import tariffs on key components

Biden’s government on Wednesday unveiled additional tariffs on imports from China, covering key components used in solar panels and many other products, in its latest bid to protect domestic manufacturing industries from the Asian power before he leaves office next month.

The Office of the United States Trade Representative said the rates for solar wafers and polysilicon will increase to 50 percent, while those for certain tungsten products will rise to 25 percent.

It said the tariff increases will come into force on Jan. 1.U.S. Trade Representative Katherine Tai said in a statement the increases will “further blunt the harmful policies and practices” by China and augment the domestic investments made under the Biden administration to advance “a clean energy economy” and “the resilience of critical supply chains.

“The announcement was made ahead of President-elect Donald Trump replacing Biden in the White House on Jan. 20.

All the tariff increases fall under Section 301 of the U.S. 1974 trade law, which authorizes the use of levies against a foreign country’s allegedly unfair practices.

The section was a favourite tool of Trump in justifying the imposition of higher tariffs on Chinese imports when he started a trade war with Beijing in 2018 during his first term as president.

Despite some differences in its approach to China, the Biden administration has regarded the Asian power as the most significant challenge to U.S. national security.

It largely retained the tariffs imposed by Trump and increased them on Chinese goods in sectors of strategic importance, such as semiconductors, solar cells and steel products.

The tariffs on solar cells and semiconductors, for example, were doubled to 50 percent in September.