The White House took several pointed questions Tuesday on its new Chinese electric vehicle tariffs, insisting that they won’t hurt consumers with higher prices.
“Biden has frequently pledged that no American making under $400,000 would see their taxes go up,” a reporter said. “Tariffs are effectively a tax on imports. I’m wondering if you can commit that no American importer making less than $400,000 would see their costs go up.”
Press secretary Karine Jean-Pierre responded by saying, “We do not want to see a tax increase on Americans making under $400,000” and reiterating that the tariffs are about protecting American workers from unfair Chinese competition.
The Biden administration has announced it will raise tariffs on certain Chinese steel and aluminum products from 7.25% to 25% this year, on electric vehicles from 25% to 100%, and on semiconductors from 25% to 50% next year. The move is seen as upping the ante not only with China but with former president Donald Trump, who instituted a host of Chinese tariffs during his term in office.
But tariffs will make Chinese electric vehicles, which can be had for less than $10,000 brand new, much more expensive to buy, making the matter a mixed bag for consumers. China could also raise its own tariffs in response, fueling another round of price hikes.
Another reporter pointed to remarks from Gov. Jared Polis (D-CO), who said the tariffs were “horrible news” for consumers and “a direct, regressive tax on Americans” that would affect families.
Jean-Pierre repeatedly tried to explain that the tariffs are more narrowly targeted than Trump’s, and that, when targeted with investments, will fuel a rising domestic manufacturing sector for electric vehicles.
“[Biden] wanted to make sure that this was done in a smart and strategic way,” Jean-Pierre said. “That’s what this announcement is about. It’s about making sure that we are addressing the unfair policies that we have seen from China. And this is what this does.”
United States Trade Representative Katherine Tai also took to the podium, stressing that the administration does not want a trade war with China and arguing that prices won’t rise.
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“I think that that link in terms of tariffs to [rising] prices has been largely debunked,” she said when asked if prices would go up.
“Tariffs are tools,” Tai said. “When used strategically and smartly, they can be powerful forces for economic strength and development, and that is what you see in this package.”
