US economists and analysts warn that a series of new tariffs on imports from China will have a number of adverse consequences. The tariffs, which are due to come into effect on September 27, include a 100 % duty on Chinese electric vehicles, 50 % on solar cells and 25 % on steel, aluminium, electric vehicle batteries and key minerals.
Jason Oxman, president of the Washington Information Technology Council, criticized the move. He said that the US was repeatedly resorting to further tariffs and ignoring industry concerns about the economic impact and resilience of the supply chain.
"U.S. tariffs have already cost U.S. businesses and consumers $221 billion since their introduction," Oxman added in a statement.
Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, pointed out in an interview with the Xinhua news agency that U.S. trade policy limits Americans' access to quality and affordable foreign products. The new tariffs will deprive US consumers of the right to buy low-cost Chinese electric cars.
William Alan Reinscha senior adviser at the Center for Strategic and International Studies, warned that tariffs could further hinder the United States' ability to take advantage of China's comparative advantage in green technology manufacturing. This, in turn, could hamper US efforts to transition to renewable energy.
"Trade liberalization with China would allow U.S. manufacturers to significantly expand operations through access to cheaper inputs and provide consumers with affordable goods necessary to achieve decarbonization goals," Reinsch said in his analysis.
Reinsch added that the tariffs also point to inconsistencies in US decarbonisation policies. They were introduced just as the US Treasury Department issued final rules on the Clean Vehicle provisions of the Inflation Reduction Act, which offer additional flexibility in sourcing minerals and batteries. This contradictory approach shows that the US government is struggling to adopt a coherent strategy to accelerate the green transition.
Jeffrey Sachs, director of the Centre for Sustainable Development at Columbia University, told Xinhua news agency that the world should avoid falling into a vicious circle of protectionism. The United States is walking away from its international commitments and breaking international economic and trade rules. "China and other countries should vigorously defend the international trading system and maintain the openness of world trade," He added.
CGTN/ gnews - RoZ