History has shown that using tariffs to prop up industries that have lost their competitive edge only accelerates their decline. The same will be true for Washington's attempt to stifle China's green energy industry.
BEIJING, Sept. 14 (Xinhua) -- After years of criticizing former President Donald Trump's tariffs for harming U.S. businesses and consumers, the Biden U.S. administration is now following the same misguided path.
Despite widespread opposition, the U.S. government on Friday finalized its decision to increase tariffs on Chinese imports, particularly on Chinese electric vehicles (EVs), solar cells, EV batteries and other related products. Such a protectionist step not only threatens to harm the U.S. economy but also further diminishes Washington's credibility on the global stage.
As a founding member of the World Trade Organization, the United States has long claimed to champion free trade. However, its unilateral actions -- particularly the use of Section 301, a relic of the Cold War -- serve to politicize and weaponize trade issues, blatantly violating multilateral trade rules.
U.S. President Joe Biden's embrace of Trump-era protectionism is particularly notable given his past criticisms. During the 2020 campaign, Biden was clear in denouncing Trump's tariffs as economically harmful, arguing that they hurt the very people supposed to be helped.
Yet, in a troubling reversal, the White House is extending and even intensifying many of the same trade policies once condemned, despite clear evidence that they have failed to deliver the promised benefits.
It is ultimately American consumers paying for these duties. According to estimates from Moody's, a leading rating agency, 92 percent of the costs from the tariff hikes will be borne by U.S. consumers, increasing the average American household's expenses by 1,300 U.S. dollars annually.
The Biden administration's justification of these tariffs -- that they are necessary to ensure "fair competition" -- does not hold up under scrutiny.
China's fast development in some emrging industries is not accidental. It is the result of a forward-looking industrial policy that prioritizes green, low-carbon development while leveraging a robust supply chain, advanced technology, and a skilled workforce. This market-driven approach has made China a global leader, with products even U.S. businesses rely on. As one American small business owner said, "We can't source what we need anywhere but China."
Instead of grappling with the real issue at hand -- whether U.S. political elites are prioritizing internal development over political bickering -- Washington has fixated on using China as a convenient scapegoat. The current tariffs are not about leveling the playing field, but about avoiding the hard work of reinvesting in American infrastructure, education, and industry.
History has shown that using tariffs to prop up industries that have lost their competitive edge only accelerates their decline. The same will be true for Washington's attempt to stifle China's green energy industry.
As Drew Bernstein, co-chairman of Marcum Asia, noted in an article for Forbes, "Once tariffs become a permanent part of the economic landscape, they undermine the competitiveness of domestic producers and force consumers to overpay for lower-quality products. Sooner or later, the tariff walls will come tumbling down."
Ultimately, Washington must face a stark choice: double down on a losing protectionist strategy or embrace cooperation with China. The latter offers a path to shared prosperity in an interconnected global economy, while the former will only ensure that the United States falls behind.■
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