The Biden administration implements steep tariffs on Chinese imports, including 100% duty on electric vehicles, to protect domestic industries. U.S. Trade Representative's office announces tariffs on solar cells, steel, aluminum, EV batteries, and key minerals. Analysis shows 50% duty on Chinese semiconductors, with new categories added for polysilicon and silicon wafers in 2025. Tariffs on lithium-ion batteries remain at 25%, affecting EVs on Sept. 27 and other devices on Jan. 1, 2026.
The decision aims to diversify the U.S. EV industry away from China's supply chain dominance. The tough tariffs are necessary to counteract China's subsidies and technology transfer policies. Despite China's retaliation threats, the U.S. remains firm in protecting its industries. The final tariff decision provides relief for U.S. port operators and adjusts tariffs on medical supplies, aiming to shift away from Chinese suppliers.
This move will impact the financial markets, particularly the EV, solar, and semiconductor sectors. Investors should be cautious of potential disruptions in the supply chain and consider diversifying their portfolios to mitigate risks. Stay informed about the ongoing trade tensions between the U.S. and China to make well-informed investment decisions.