US weighs raising tariffs on Chinese EVs, solar goods

The Biden administration is discussing raising tariffs on some Chinese goods, including electric vehicles, in an attempt to bolster the U.S. clean-energy industry against cheaper Chinese exports, people familiar with the matter said.

- Andrew Duehren

Biden administration officials, long divided over trade policy, have left in place Trump-era tariffs on roughly $300 billion of Chinese goods.

But officials at the White House and other agencies are debating the levies again, the people said, with an eye on wrapping up along-running review of the tariffs early next year.

Chinese EVs are already subject to a 25% tariff, which has helped prevent subsidized Chinese automakers from making inroads into the U.S. market.

Raising that tariff likely would have little immediate impact on U.S. consumers. Other targets for potential tariff-rate increases are Chinese solar products and EV battery packs, the people said. While the U.S. now primarily imports solar material from Southeast Asian countries, China is still an important supplier of EV batteries.

Raising some tariffs could allow President Biden to signal he is tough on China as he approaches a 2024 re-election campaign that could again see him face Donald Trump.

The Biden administration is also considering lowering tariffs on some Chinese consumer products that officials don't see as strategically important, in addition to the potential increases on clean-energy products, the people familiar with the conversations said.

The administration hasn't decided on the tariffs, the people said. Previous internal discussions about adjusting tariffs on China fizzled out without any changes. Spokesmen for the Office of the U.S.

Trade Representative and the National Security Council declined to comment.