In a move that is likely to inflame trade tensions between the world's two biggest economies, the Biden administration announced on Tuesday it was imposing more stringent curbs on Chinese imports worth $18 billion (€16.67 billion),
DW reports.
After nearly four years of review, Washington will hike tariffs in targeted sectors, with Chinese electric vehicles (EVs) bearing the brunt of the increase. The total tariff on these vehicles will skyrocket to 102.5% from the current 27.5%.
The new measures also target other technologies including batteries, solar cells, steel, and aluminum. 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.
Biden has previously announced steel and aluminum tariffs, which will increase to 25% on some products that have a 7.5% rate or no tariffs now.
The action is aimed at encouraging China to "eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation," the White House said in a statement.
The EV rate aims to protect the US from a potential flood of Chinese cars that could upend the politically sensitive auto industry.
Biden's team has meticulously finalized the measures, balancing the need for protectionism with considerations for sustaining economic growth.
The new tariffs will begin after 90 days from Tuesday — a period that will be closely watched for signs of tit-for-tat retaliation by China.
