BEIJING, Sept. 14 (Xinhua) -- The U.S. administration on Friday finalized sharp tariff hikes on some Chinese imports, including a 100 percent duty on electric vehicles (EVs), drawing harsh criticism from industrial insiders and experts.
In addition to the duty on EVs, the tariff rate will go up to 50 percent on solar cells and to 25 percent on EV batteries, critical minerals, steel and aluminum products, and ship-to-shore cranes, beginning Sept. 27, according to the office of the U.S. Trade Representative.
Kuang Xianming, deputy head of the China Institute for Reform and Development, warned that the U.S. decision could backfire, saying that besides harming its trading partners, the imposition of tariffs is also unfavorable to relevant industries within the United States, and disrupts global economic and trade rules, as well as the overall global economic order.
The purpose of the U.S. tariffs is to increase the cost of entry for Chinese products and thus reduce their competitiveness, but the competitiveness of the Chinese products largely stems from their cost performance. If the Chinese manufacturers continue to leverage the quality and performance of the products, they will still maintain their competitive advantage despite the U.S. policies, he said.
The tariff hikes will harm the United States and the whole world as the "global economy is too interdependent," said Sven O. Otten, general manager of Tünkers (Jiangsu) Automation Technology Co., Ltd.
Some American and European manufacturers are producing cars in China for the whole world, and these manufacturers will also be impacted by the tariff hikes, Otten said.
According to a Guangdong-based technology company focusing on the exports of camera products, the rise in tariffs is a "strategic tool" employed by American politicians to stifle the growth of China's emerging industries, constituting an unfair competitive practice. The company is determined to further improve its products through technological innovation and continue to attract global buyers.
Commenting on the 25 percent tariff on Chinese-manufactured ship-to-shore cranes, Wang Xing, partner expert of global strategy consulting firm Roland Berger, said the tariff increase is driven by broader geopolitical and domestic political considerations rather than the protection of U.S. domestic industries.
The U.S. tariff increase has a limited overall effect on China's ship-to-shore crane industry, Wang said, adding that the Chinese industry's global competitiveness is likely to remain strong due to its technological and cost advantages, though it may face short-term challenges in the U.S. market.
The latest U.S. decision claims to protect American workers and businesses from unfair competition. However, what the United States really seeks to avoid is fair competition with other countries, said Josef Gregory Mahoney, a professor of politics at East China Normal University.
Mahoney said the United States often employs double standards, breaking the rules it imposes on others while leveraging its advantages with the dollar and its control over the global financial system.
He described the decision as "petty politics," which aims to shift blame onto others for failed U.S. domestic policies and the inability of American industries to compete in emerging sectors, especially green innovation.
"None of these policies are good for global trade or development, and it's not even good for U.S. workers, consumers or businesses. Consequently, it speaks to a deeper existential fear perhaps in the United States given China's rise, and perhaps Washington's fundamental lack of confidence in American capacities to compete," he added.
Zhang Hong, an expert with the China Automobile Dealers Association, echoed that the final tariff decision will fail to protect American workers and businesses, particularly in the EV industry.
When tariffs on EVs are raised to 100 percent, U.S. automakers will have to pay higher tariffs on imported parts and vehicles, which will directly raise the final product prices, Zhang said.
To date, the U.S. EV industry has relied heavily on overseas markets. For instance, most of the mining, refining and parts manufacturing for batteries depends on China. As a result, many U.S. automakers will be forced to adjust their battery supply chains, leading to increased vehicle production costs, Zhang added.
"The U.S. tariffs will result in a lose-lose situation," said an anonymous executive from a Chinese lithium battery company, noting that the tariffs will disrupt the normal flow of the international markets and could cause the U.S. to fall behind in the new-energy sector due to generational gap risks.
In fact, many international clients, particularly high-end European customers, are increasing their demand for Chinese battery manufacturers. These clients not only seek a steady supply of products but also want Chinese companies to build factories locally. Unfortunately, these demands are being disrupted by political factors, which is regrettable and runs counter to market needs, the executive said.
"The final tariff decision sends a very negative message to the world, representing a setback to free trade and globalization. We should oppose such protectionist policies and the use of Cold War mentality in economic activities," said Ding Chun, director of the European affairs research center at Shanghai-based Fudan University, adding that relevant American enterprises and government officials have expressed a desire to reduce these tariffs. ■