On May 14, U.S. President Joe Biden announced a series of tariff increases on imports from China, highlighting the growing tensions between the two economic powers. But what exactly do these new measures entail and what are their implications for global trade?

These tariff increases will affect a wide range of products, from electric vehicles to photovoltaic cells and semiconductors. The tariff on Chinese electric vehicles will rise from 25% to 100%, the tariff on critical battery materials will increase from zero or 7.5% to 25%, and the tariff on solar panel cells and semiconductors will go from 25% to 50%. The stated goal of the Biden administration is to counter the “unacceptable risks” posed by low-priced Chinese exports to the economic security of the United States. While some U.S. officials insist on the precise and measured nature of these measures, other voices highlight the potential repercussions on inflation and international trade relations.

Although these targeted tariffs aim to protect American industries, their real impact remains to be seen. Certain sectors, such as automotive and electronics, could be more affected, while others might see their production costs rise, potentially impacting consumers.

Moreover, this escalation in trade tensions between the United States and China could have global repercussions. The uncertainties surrounding international trade could slow down the post-pandemic economic recovery and disrupt already fragile global supply chains.

Ultimately, these developments underscore the growing importance of trade policy in the global economic landscape. As the United States seeks to rebalance its trade relations with China, the rest of the world watches closely the repercussions of this economic confrontation. It remains to be seen whether these measures will help reduce the U.S. trade deficit and stimulate economic growth, or lead to a new escalation in the trade war between the two economic giants.