Benzinga - by Piero Cingari, Benzinga Staff Writer.
President Joe Biden announced Tuesday a significant increase in tariffs on a range of Chinese goods, aimed at protecting the American economy and safeguarding domestic jobs.
These measures are also designed to counteract China’s heavily subsidized production, which Biden stated was “flooding the market” and harming U.S. manufacturers.
“Today, I’m announcing new tariffs in key sectors of the economy to ensure that our workers are not held back by unfair trade practices,” he explained. These include:
- A 25% tariff on Chinese steel and aluminum products to counter China’s overcapacity and support clean American production.
- A heavy 100% tariff on electric vehicles made in China to prevent market flooding and protect American auto manufacturers.
- A 25% tariff on electric vehicle batteries and critical minerals from China to boost the domestic EV industry.
- Increased tariffs on Chinese solar panels, raised from 25% to 50%, to support American manufacturers against subsidized competition.
- A new 50% tariff on semiconductors made in China, a move to reclaim the semiconductor industry domestically.
Biden also cited major investments his administration has made, including “up to $1.5 billion in six clean steel projects across America, creating thousands of union jobs.”
This effort, he noted, is significant because “Clean American steel, aluminum, it’s a big deal claim because of the way we manufacture it here. It’s half as much carbon as steel made in China.”
He also mentioned the bipartisan infrastructure law, which will establish a network of 500,000 electric vehicle charging stations across the country, creating thousands of jobs.
“The future of electric vehicles will be made in America by union workers,” the president stated.
Biden contrasted his approach with that of former President Donald Trump, noting, “My predecessor promised to increase American exports and boost manufacturing but failed.”
Asserting the global economic leadership of the U.S., Biden declared, “America is rising; we have the best economy in the world. Our trade deficit with China is down to the lowest level in over a decade, and we’re standing up against Chinese government unfair economic practices.”
He reinforced his commitment to ensuring that “everyone deserves a fair shot” and highlighted new investments, such as Microsoft Corp.‘s (NYSE:MSFT) plan to build a data center in Racine, Wisconsin, which promises thousands of good-paying jobs.
Market Reactions
- Clean energy stocks, as tracked by the Invesco WilderHill Clean Energy ETF (NYSE:PBW), rallied 4% on Tuesday, on track for their strongest-performing session since mid-December 2023.
- Top performers were SunPower Corporation (NASDAQ:SPWR) Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) and FuelCell Energy, Inc. (NASDAQ:FCEL) with daily gains ranging from 30% to 53%.
- U.S. solar stocks, as tracked by the Invesco Solar ETF (NYSE:TAN), rose Tuesday, following a 1.7% surge on Monday.
- U.S. Semiconductor stocks, as monitored through the iShares Semiconductor ETF (NASDAQ:SOXX), were 1% higher.
- Among U.S. EV automakers, Tesla Inc. (NASDAQ:TSLA) and Rivian Automotive Inc. (NASDAQ:RIVN) were both up by about 3%, while Lucid Group Inc. (NASDAQ:LCID) soared 12%.
- Chinese EV-makers witnessed mixed session with NIO Inc-ADR (NASDAQ:NIO) up 6%, XPeng Inc-ADR (NYSE:XPEV) up 1.7% and Li Auto Inc. (NASDAQ:LI) down 3%.
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