White House levy to protect US makers from cheap imports likely to inflame trade tensions

White House levy to protect US makers from cheap imports likely to inflame trade tensions

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.

Sources said the move followed a four-year review and was a preventive measure designed to stop cheap subsidised Chinese goods flooding the US market and stifling the growth of the American green technology sector.

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Despite the risks of retaliation from Beijing, Biden said the increased levies were a proportionate response to China’s overcapacity in the EV sector. Sources said China was producing 30m EVs a year but could sell only 22-23m domestically.

  • Kecessa@sh.itjust.works
    6824·
    6 months ago

    The reason why you’re saving on Chinese cars is because of huge government subsidies on their side, so they don’t play by the rules of the free market either.

    • Breve@pawb.social
      648·
      6 months ago

      Oh, like the time in 2009 when the US government gave $81 billion dollars to the automotive industry? Or again in 2023 when Biden put $12 billion in incentives on the table for them to make EVs?

      • 3volver@lemmy.world
        211·
        6 months ago

        Nailed it. Sick and fucking tired of hearing the “oh China’s unfair subsidies blah blah” bullshit. The US has been doing the same thing, just we’ve had our futures sold to corporation’s profit margins.

    • njm1314@lemmy.world
      371·
      6 months ago

      Nobody has ever played by the rules of the free market. It’s been a scam from day one.

    • Einstein@sh.itjust.works
      293·
      6 months ago

      I mean, Our government could do the same thing to keep costs low and competitive instead of just making them more expensive for everyone.

      • Kecessa@sh.itjust.works
        514·
        6 months ago

        So? I never said the USA plays by the rules, I even used the word “either” in my previous reply.

        • Hugh_Jeggs@lemm.ee
          131·
          6 months ago

          I think what they’re saying is that both countries are subsidising the industries.

          Chinese companies are thinking ahead and using the subsidies to sell more vehicles

          American companies are, surprise-sur-fucking-surprise, stealing the subsidies to make a few billionaires richer

    • buzz86us@lemmy.world
      14·
      6 months ago

      The reason you’re saving on the running costs of a gas car is because of huge government subsidies on the fossil fuel industry.

    • guacupado@lemmy.world
      121·
      6 months ago

      It’s funny how everyone tries to make China subsidizing cars for its population a bad thing. The US should bet taking note. Taxes should be used to help the population, not the people in charge of the population.

      • Kecessa@sh.itjust.works
        612·
        6 months ago

        That won’t make US made EV cheaper. China relies on what is basically slavery as well, if that’s what you want for US factory workers in order to be able to buy a car for cheap car then I think you don’t have your priorities straight…

        • guacupado@lemmy.world
          11·
          6 months ago

          Tell me how much money the CEOs make then tell me how much worker wages have to do with how expensive the cars are.

          • Kecessa@sh.itjust.works
            1·
            6 months ago

            GM’s CEO makes 28m/year

            A drop in the bucket with their 170b in revenue

            Their factory workers make way over 20$/h, some make way over 50$/h.

            How much do you think Chinese factory workers get paid?

            • UnderpantsWeevil@lemmy.world
              11·
              6 months ago

              GM’s CEO makes 28m/year

              Looking back at the last 5 years, General Motors’s selling, general & admin expenses peaked in December 2023 at 9.656 billion.

              Selling, General & Admin Expenses For General Motors

              If you include the incentives across the entire business, rather than just fixating on a single employee, you discover a figure equal to around 5% of the $171B in gross revenues. It should be noted that even this is a conservative estimate, as General Motors licenses and contracts to third-party businesses with their own administrative expenses.

              How much do you think Chinese factory workers get paid?

              In the China versus US size stakes, it’s what you measure that counts

              This matters for the debate over which of the US or China has the larger economy because, measured at market exchange rates, US GDP is still around 40% larger than that of China. (See Chart 1.) But when measured at PPP exchange rates, China’s economy overtook that of the US in 2016 and is now about 20% bigger.

              Because of the cheap cost of living in China, their factory workers can earn less on paper and still live much higher on the hog. Often literally (Chinese consumers eat about 5kg more pork per capita than their American peers). But also in terms of home ownership rates (90% in China to 60% in America) and retirement age (54 in China compared to 59 in the US) and life expectancy (78 in China compared to 76 in the US).

              If you consult the Gini Index, the US and China are within 2 points of each other as of 2021.

              This is largely thanks to the big public works financed and administered by a unified national government. A relatively poor country can produce quality of life superior to the global leader simply by doing the old FDR style tax-and-spend tricks that put America at the front of the pack 80 years ago.

    • UnderpantsWeevil@lemmy.world
      62·
      6 months ago

      huge government subsidies on their side

      China’s public education, public health care, public housing, and public mass transit: Evil Subsidies

      America’s $7500 tax credit: Sensible free market EV incentive