President Joe Biden will announce an update to tariffs on trade with China as soon as next week that will target strategic sectors such as electric vehicles, semiconductors, and solar power, according to a report.Â
Measures that were first enacted under former President Donald Trump in 2018 were reviewed and will largely stay in place but additional charges aimed at specific areas will be added, rather than across-the-board measures — something preferred by Trump — Bloomberg reported, citing people familiar with the situation.
…
President Joe Biden will announce an update to tariffs on trade with China as soon as next week that will target strategic sectors such as electric vehicles, semiconductors, and solar power, according to a report.Â
Measures that were first enacted under former President Donald Trump in 2018 were reviewed and will largely stay in place but additional charges aimed at specific areas will be added, rather than across-the-board measures — something preferred by Trump — Bloomberg reported, citing people familiar with the situation.
The decisions will have an impact on
Tesla
,
the U.S. firm that both makes and sells cars in China, as well as its Chinese rivals
and
NIO
.
Chip makers including
and
are also likely to be affected.Â
Trade tensions between China and the U.S. were heightened when Trump introduced tariffs on imported steel six years ago. They soon spread to semiconductors, and could soon weigh on other industries. Biden and Trump are likely to face each other again at the November vote and are each trying to look tough on China to win over the electorate. Trump has promised to enact a 60% tax on all Chinese imports if elected.
If Biden expands tariffs, China would be under pressure to respond, escalating tit-for-tat measures. The moves come after the U.S. government passed a law forcing Chinese-owned social media site TikTok to either sell its U.S. operations or be banned in the country.
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shares were up 1.2% in premarket trading. NIO American depositary receipts slipped 1.5%. BYD stock finished 1.1% lower in Hong Kong.
was up 1.6% in the premarket, and Intel added 0.8%.
Write to Brian Swint at brian.swint@barrons.com
