As reported by the Guardian:
"The US president, Joe Biden, has announced a 100% tariff on Chinese-made electric vehicles as part of a package of measures designed to protect US manufacturers from cheap imports. In a move that is likely to inflame trade tensions between the world’s two biggest economies, the White House said it was imposing more stringent curbs on Chinese goods worth $18bn... As well as a tariff increase from 25% to 100% on EVs, levies will rise from 7.5% to 25% on lithium batteries, from zero to 25% on critical minerals, from 25% to 50% on solar cells, and from 25% to 50% on semiconductors. Tariffs on steel, aluminium and personal protective equipment – which range from zero to 7.5% – will rise to 25%."
Although the move is merely symbolic -- the previous US President had already locked Chinese EVs out of the US market with a 25% tariff -- it reflects the increasing timidity of America's capitalist economy in the face of a globally assertive Chinese economy that can be mobilised to swamp any market it chooses with cheaper and "good enough" products to create future monopolies.
US companies, by contrast, struggle to acquire market share with technological innovations that can soon be stolen by competitors, workers who prioritise their own human rights over efficiency, and investors who are soon distracted by various "get rich" schemes that don't involve them putting their money into long-term industrial production.
The biggest beneficiary of the tariff will be Elon Musk's Tesla company, which ironically has outsourced most of his production to China. Now Musk can continue to sell his overpriced Teslas to a captive US market, and even lower quality by shifting production back to US factories.
This may even influence some of the crappy opinions he pushes on Twitter.
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