'Americans Can Out-Compete Anyone': Biden Unveils New Tariffs Against China

Pressing hard on the pedal of protectionism, Joseph Biden-led US administration has released a new set of tariffs against country's arch-rival China. US and China are the world's first and second largest economies. The trade war between the two countries has taken a new turn, as the US unveiled a tranche of tariffs with a steep rise.

Chinese products worth USD 18 billion entering the US would be under the radar of the authorities. These products include an array of crucial things items, including steel, aluminium, semiconductors, critical medicines, solar cells and other items.

100 per cent Tariff On EVs

In these tariff, the advanced tech-run industries will suffer the most. As the Biden administration has announced a gargantuan 100 per cent tariff on electric vehicles. Along with that, there is another 50 per cent on crucial semiconductors, that in many cases are used to make the aforementioned EVs.

Major players like Geely and the world's second biggest EV maker, BYD would have to reconsider their options, when its comes to selling their products on American shores.

One of the fundamental tenet behind this decision is reasoned by the supposed unfair means, that is allegedly used by China and its companies through which they carry out trade.

As according to a statement obtained and reported by the Reuters, president Biden said, "American workers can out-work and out-compete anyone as long as the competition is fair, but for too long it hasn't been fair," Biden said during a speech in the White House Rose Garden before unions and companies. "We're not going to let China flood our market."

The largest economy in the world imported goods worth a massive USD 427 billion from the Asian giant, while exporting goods worth USD 148 billion back to China. Resulting in a significant trade deficit. China is known to have significant trading deficit with most of its trading partners.

Chinese Markets React To Tariffs

It is to be noted that, China is the United States's largest trade partner. And China, as per reports has vowed of an immediate retaliation and has warned that these actions will have an impact on the bilateral trade relation between the two countries.

These developments come just a week after Chinese president Xi Jinping's meeting with European leaders, on his Europe tour.

The American markets closed trading on May 14 in green, with major three indices, Dow Jones, S&P and Nasdaq gaining on an average of just under 1 per cent. Dow Jones ended the day with a gain of 0.32 per cent. S&P 500 ended with a 0.48 per cent gain. And, Nasdaqy ended with 0.75 per cent jump. Meanwhile, two major indices under Chinese influence, Hong Kong's Hang Seng (-0.22 per cent) and Shanghai's SSE Composite (-0.82 per cent) are trading in Red on May 15.