The Biden administration announced on Friday that it has officially implemented tariff hikes on specific Chinese-made products, a move that was first announced by President Biden in May. The United States Trade Representative's Office states that the tariff rates will increase to 100% on electric vehicles, 50% on solar cells, and 25% on electric vehicle batteries, critical minerals, steel, aluminum, face masks, and ship-to-shore cranes starting from September 27.

In addition, tariff hikes on other products, including semiconductor chips, are planned to be rolled out gradually over the next two years. While these increases impact a relatively small portion of US imports, they reflect President Biden's broader economic policies aimed at boosting domestic manufacturing in key industries such as clean energy and semiconductor chips.

US Trade Representative Katherine Tai emphasized the goal behind these finalized tariff increases, stating that they aim to target the "harmful policies and practices" of the People's Republic of China that continue to negatively impact American workers and businesses.

It is expected that China will retaliate by increasing tariffs on US-made goods. China's foreign ministry spokesperson, Wang Wenbin, had previously stated that China opposes the unilateral imposition of tariffs, which they believe violate World Trade Organization rules.

Simultaneously, the Biden administration unveiled a new initiative to restrict the amount of foreign goods that can enter the US without tariffs. This effort intends to limit the "de minimis" exemption, which applies to goods valued at $800 or less. The majority of these exempt shipments currently originate from China, which has sparked the administration's decision to make some imports ineligible for this exemption.

Tariffs have been a politically debated topic, with some economists arguing that they are costly tools that do not always yield the desired effects on domestic industries. Nonetheless, many Democrats and Republicans agree that China has engaged in unfair trading practices, making Chinese-made goods more competitive on the global market.

It is crucial to highlight the differences between President Biden's targeted approach to tariffs and former President Trump's call for sweeping tariffs across the board. While Trump proposed imposing tariffs on all foreign imports at up to 20%, with additional tariffs on Chinese imports and countries moving away from using the US dollar, Biden has opted for a more specific approach.

Notably, the tariff hike on electric vehicles from 27.5% to 100% may not lead to an immediate surge in prices for American consumers due to the relatively small amount of electric vehicles imported from China. However, concerns have been raised among US automakers about the potential influx of low-priced Chinese-made electric vehicles that could flood the US market, as China currently produces 70% of the world's electric cars.

Overall, the Biden administration's finalized tariff hikes on Chinese-made products align with their efforts to protect American workers and promote domestic manufacturing. However, the impact of these tariffs on the US steel industry may be limited as China accounts for a small percentage of US steel imports.

These developments signify ongoing tensions and actions on the trade front between the United States and China, with broader implications for the global economy.