Written by Cláudio Afonso | LinkedIn | X
U.S. Treasury Secretary Janet Yellen has called on the European Union to collaborate with the United States in addressing the surge of Chinese green-tech exports, warning that the influx threatens global manufacturing sectors.
Last week, the US administration announced tariffs of 25 percent on steel and aluminum, 50 percent on semiconductors, 100 percent on electric vehicles, and 50 percent on solar panels.
Speaking in Germany this Tuesday, Yellen emphasized the need for a united response to China’s manufacturing dominance to protect industries worldwide, as initially reported by FT.
“China’s industrial policy may seem remote as we sit here in this room, but if we do not respond strategically and in a united way, the viability of businesses in both our countries and around the world could be at risk,” Yellen told FT at the Frankfurt School.
In a speech on Tuesday, Yellen defended the Biden administration’s tariff hikes including a 400 percent increase on China electric vehicles. “The tariff increases are strategic and targeted steps,” she stated. This follows the White House’s tariff adjustments aimed at safeguarding U.S. industry, especially in key electoral states.
In a post on the social media platform X, Joe Biden said that “China is determined to dominate these industries” while enhancing that he is “determined to ensure America leads the world in them”.
Yellen also countered European criticisms of U.S. protectionism, highlighting substantial U.S.-EU trade in green energy and promoting collaborative efforts. “We’re not creating opportunities just at home. US-EU trade in green energy products exceeded $2bn in 2022, and European countries can be leaders in this area,” she noted.
“As we look ahead, there’s scope for much more joint and complementary action that will further these three objectives,” Yellen said. “The IRA is working, and we welcome similar action around the world, including the European Green Deal.”
During a visit to Sweden last week, German Chancellor Olaf Scholz was asked about the 400 percent increase in tariffs on Chinese-made electric vehicles. The Chancellor pointed out that half of the EVs imported from China were produced by Western manufacturers.
Swedish Prime Minister Ulf Kristersson also commented saying he considers the hike a bad idea, “As far as tariffs are concerned, we are in agreement that it is a bad idea to dismantle global trade,” Kristersson said in a press conference.
In the last quarter of last year, electric vehicle sales in the US surged by 40 percent compared to the previous year, reaching nearly 1.2 million vehicles, according to data from Cox Automotive.
Additionally, the total EV market share in the country increased from 5.9 to 7.6 percent compared to the previous year.
Written by Cláudio Afonso | LinkedIn | X
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