The Biden administration is increasing tariffs on $18 billion worth of imports from China, including raising tariffs on electric vehicles from 25% to 100% and on semiconductors from 25% to 50%.
In an exclusive interview with Yahoo Finance, President Biden said “China is basically insuring their entire industry” and would “pay whatever it takes” to saturate the market with their products. Biden claims the new tariffs are to protect American jobs. On EVs, for example, Biden told Yahoo Finance editor-in-chief Brian Sozzi that China is “trying to flood the market with incredibly cheap EVs. They’re not making money on EVs.” [and] They’re doing it intentionally to kill other people’s businesses,” he said. After all, the new tariffs are meant to be “fair.”
Biden expects China to talk about retaliation, but thinks the actual response will be minimal: “China will probably figure out a way to raise tariffs on unrelated products.”
One thing Biden is struggling with is the fact that Americans remain frustrated by high inflation, which has risen nearly 20% since he took office. Biden acknowledged that “people are just nervous” about the economy right now, but added that he intends to “stay steady, stay on course” and that “it’s just going to take a little while longer.”
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