❮ Return to Blog

What to Know About New Tariffs on Chinese Goods

What to Know About New Tariffs on Chinese Goods

Estimated reading time: 0 minutes

Biden Takes on China

Last week, President Joe Biden announced tariffs on some $18 billion worth of Chinese goods, building on policies instituted by his predecessor, former President Donald Trump.

Biden focused on goods he claimed were unfairly subsidized by the Chinese government, including steel, electric vehicles, batteries, and solar panels. 

This should be good news for green energy companies already benefiting from the Inflation Reduction Act. But what does it mean for American consumers and workers?

The Details

Steel and aluminum from China will be hit with a 25% levy. That jumps to 50% for semiconductors, which have been a focal point in the administration’s tech trade war with Beijing. The same 50% rate will apply to solar panels. But it doesn’t stop there: Electric vehicles will be hit with a whopping 100% tariff rate. 

“China heavily subsidized all these products, pushing Chinese companies to produce far more than the rest of the world can absorb and then dumping the excess products on the markets at unfairly low prices,” Biden said at the White House.

Cause and Effect

American consumers want cheaper EVs. With these tariff increases, it’s unlikely those EVs will come from China. In that way, these latest tariffs could be successful. 

Since electric vehicles from Chinese automakers such as BYD aren’t currently available in the United States, it’s possible few Americans will notice the increased rates. The tariffs should be welcomed by American companies including Tesla (TSLA) and Ford (F), as well as European carmakers such as Mercedes-Benz Group AG, which has several plants in the US. Even though certain parts could get more expensive due to the trade restrictions, any consumer demand will likely be fed by domestic or other non-Chinese car makers. As for workers, the tariffs could indeed be beneficial, especially in the clean energy sector, where job creation has been a focus for the administration. But as with so many government policies, only time will tell how it will really shake out.

This was likely not the last round of tariffs either. Both President Biden and former President Trump, who stand to face off in this year’s election, have a tough stance on trade with China.

SoFi Securities (Hong Kong) Limited and its affiliates (SoFi HK) may post or share information and materials from time to time. They should not be regarded as an offer, solicitation, invitation, investment advice, recommendation to buy, sell or otherwise deal with any investment instrument or product in any jurisdictions. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
SoFi HK does not make any warranties about the completeness, reliability and accuracy of this information and will not be liable for any losses and/or damages in connection with the use of this information.
The information and materials may contain hyperlinks to other websites, we are not responsible for the content of any linked sites. The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi HK. These links are provided for informational purposes and should not be viewed as an endorsement. The risk involved in using such hyperlinks shall be borne by the visitor and subject to any Terms of Use applicable to such access and use.
Any product, logos, brands, and other trademarks or images featured are the property of their respective trademark holders. These trademark holders are not affiliated with SoFi HK or its Affiliates. These trademark holders do not sponsor or endorse SoFi HK or any of its articles.
Without prior written approval of SoFi HK, the information/materials shall not be amended, duplicated, photocopied, transmitted, circulated, distributed or published in any manner, or be used for commercial or public purposes.


About SoFi Hong Kong

About SoFi Hong Kong

SoFi – Invest. Simple.


SoFi Hong Kong is the All-in-One Super App with stock trading, robo advisor and social features. Trade over 15,000 US and Hong Kong stocks in our SoFi App now.