President Biden raises US import tariffs on Chinese EVs, batteries, solar cells, medical supplies, semiconductors, port cranes, minerals, and metals while ignoring patients and medical providers

President Biden has directed the US Trade Representative to take action against imported Chinese goods that are unfairly priced below market by increasing tariffs 25-100% on EVs, batteries, solar cells, medical supplies, semiconductors, port cranes, minerals, and metals. Critically, American patients and medical providers depending on syringes, face masks, and medical gloves will be hit by 25-50% tariff increases. The action is intended to prevent further collapse of the US manufacturing industry while retaining key technologies critical to the US supply chain.

China has a population of over 1.4 billion in 2022, which is over four times that of America at 333 million, but average per capita income in America is $76,330, which is over six times that of China at $12,720. The labor cost differential is one large reason why Chinese products are so cheap, and the other is Chinese government subsidy support of key industries.

American businesses began outsourcing and offshoring of US manufacturing decades ago. Outsourcing was not a strategy until 1989, the same year Kodak, a long-established American film and camera manufacturer, began outsourcing IT functions. American businesses and consulting companies began practicing and promoting outsourcing and offshoring as a means to increase profits while reducing costs over the following decades.

Outsourcing has caused the American manufacturing industry to retreat across numerous industries where Chinese manufacturers now dominate. For example, China is responsible for 77.8% of worldwide solar cell production in 2022, whereas America makes merely 1.9%. While capitalists would continue outsourcing for profits, the COVID-19 pandemic made US leaders aware of the overdependence upon foreign suppliers. In other words, China could cripple America instantly by refusing to ship critical supplies such as N95 masks and medical supplies.

The tariffs will increase as follows under Section 301 of the Trade Act of 1974:

• 2024
  • 100% Electric vehicles (EV)
  • 50% Solar cells and modules
  • 25% EV lithium-ion batteries and non-lithium-ion battery parts
  • 25% Critical minerals
  • 25% Steel and aluminum products
  • 25% Port cranes (ship-to-shore)
  • 50% Medical - Syringes and needles
  • 25% PPE – Face masks

• 2025
  • 50% Semiconductors

• 2026
  • 25% Non-EV lithium-ion batteries
  • 25% Natural graphite
  • 25% Permanent magnets

Readers should stock up on inexpensive face masks, medical gloves, and insulin syringes before the tariffs increase prices dramatically. Patients depending on powered medical equipment such as oxygen concentrators who need a power backup should consider buying a lithium backup generator sooner than later. Chinese batteries for electronics including Apple iPhone replacement batteries will also be hit by the tariffs. Realistically, America will not have the manufacturing plants or raw materials required to manufacture all it needs in the categories targeted by the Biden China tariff for years, even decades, to come.