<img src='https://news.cgtn.com/news/2024-09-25/U-S-economists-warn-of-dire-consequences-from-tariffs-on-China-1xbuMcS3bt6/img/c2f2b5d3236c40b28e725c1fdc3e6152/c2f2b5d3236c40b28e725c1fdc3e6152.jpeg' alt='Cars ready for export in east China's Jiangsu Province, September 6, 2024. /CFP'
U.S. economists and analysts have warned that the series of new tariffs on imports from China will cause multiple dire consequences.
Set to take effect on September 27, these tariffs include a 100 percent duty on Chinese electric vehicles, 50 percent on solar cells, and 25 percent on steel, aluminum, EV batteries, and key minerals.
Jason Oxman, president of the Washington-based Information Technology Industries Council, criticized the move. He said the U.S. has repeatedly resorted to more tariffs, ignoring industry concerns about economic impacts and supply chain resilience.
U.S. tariffs have already cost American businesses and consumers $221 billion since implementation, Oxman added in his statement.
Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, pointed out in an interview with Xinhua News Agency that the U.S. trade policy limits Americans’ access to high-quality and affordable foreign products. The new tariffs will deprive American consumers of the right to buy cost-effective Chinese electric vehicles.
William Alan Reinsch, a senior adviser at the Center for Strategic and International Studies, warned that tariffs could further hinder the United States’ ability to leverage China’s comparative advantages in green technology production. This, in turn, could impede U.S. efforts to transition to renewables.
“Liberalizing trade with China would allow U.S. manufacturers to significantly scale up operations by accessing lower-cost inputs, and provide consumers with affordable goods essential for achieving decarbonization goals,” Reinsch stated in his analysis.
The tariffs also highlight a misalignment in U.S. decarbonization policies, Reinsch added. They were imposed just as the U.S. Department of the Treasury released final rules on the clean vehicle provisions of the Inflation Reduction Act, which offer additional flexibility in minerals and battery sourcing. This contradictory approach demonstrates the U.S. government’s challenges in adopting a unified strategy to accelerate the green transition.
Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, said in an interview with Xinhua News Agency that the world should beware of falling into a vicious cycle of protectionism. The U.S. is walking away from its international responsibilities and violating international economic and trade rules. China and other countries should firmly defend the international trade system and maintain the openness of global trade, he added.
