New US tariffs on Chinese electric vehicles, batteries and solar cells could raise consumer prices

New tariffs on Chinese electric vehicles and batteries, solar cells, medical equipment and other goods are intended to protect U.S. jobs and manufacturers. They could raise prices on certain specific items, experts say, though a broad inflationary impact is unlikely in the short term.

The tariffs will be phased in over the next three years, officials said. Those that take effect in 2024 include EVs and EV batteries, along with solar cells, syringes, needles, steel and aluminum and more. Some would not take effect until 2026.

The election-year tariffs could increase friction between the world’s two largest economies. China's foreign ministry said in a statement that the tariffs “will seriously affect the atmosphere of bilateral cooperation.”

Administration officials say they don't expect the tariffs to significantly escalate tensions between the two counties, although China is likely to explore ways to respond to the new taxes on its products.

WHY IS THE WHITE HOUSE IMPOSING NEW TARIFFS ON CHINA?

President Joe Biden said Chinese government subsidies for EVs and other consumer goods ensure that Chinese companies don’t have to turn a profit, giving them an unfair advantage in global trade.

“For years, the Chinese government has poured state money into Chinese companies… it’s not competition, it’s cheating,'' the Democratic president said Tuesday at the White House.

The tariffs come in the middle of the presidential campaign between Biden and his Republican predecessor, Donald Trump, in which they are vying to show who’s toughest on China. The Biden administration has insisted that its approach is more targeted and less inflationary than the across-the-board tariffs proposed by Trump.

HOW DO THE TARIFFS AFFECT THE U.S.