The United States is set to impose new tariffs on Chinese electric vehicles (EVs), semiconductors, medical supplies, and renewable energy imports, according to reports.

The development comes at a time when the US and its European partners are deeply concerned about cheap Chinese imports. They are concerned that China is dumping its industrial overcapacity in their markets at the cost of their own industries. The Joe Biden administration of the US has been lately working to safeguard American manufacturers against the influx of cheap Chinese imports driven by subsidies and weak domestic demand.

The Biden administration may hike tariffs on EVs from 25% to 100%, according to The New York Times.

The report further said the hike may be announced as early as next week. Separately, Reuters reported that tariffs may be announced on Tuesday.

What will be targeted by US in new tariffs?

The new tariffs by the Biden administration are expected to target EVs, renewable energy imports, semiconductors, medical supplies, and industrial metals like steel and aluminum.

The renewable energy sector-related goods expected to be targeted include solar panels and lithium batteries.

Among the medical supplies, the tariffs are expected to target syringes and personal protective equipment (PPE), as per Reuters.

Among the EVs, the Biden administration is particularly concerned about vehicles connected to the internet. US President Joe Biden has said that such vehicles posed risk to the US national security as they could send sensitive information to Beijing. The Biden administration is currently reviewing if such vehicles should be blocked completely from entering US market, according to the report.

Since coming to office in 2021, US President Joe Biden has invested in boosting American manufacturing capabilities. He has specifically focused on semiconductors and renewable and clean energy industries — sectors most acutely affected by China. As per the White House, investments to the tune of more than $800 billion have been facilitated by Biden’s Investing in America agenda —including the CHIPS and Science Act that doled out huge subsidies— in these sectors.

‘I’m looking for competition, not fight with China’: Biden

As tensions between the United States and China rise on all fronts ranging from the Indo-Pacific region to trade, Biden has said that he is looking for competition and not conflict.

“I’m not looking for a fight with China. I’m looking for competition — fair competition,” said Biden last month in an address to steelworkers in Pittsburgh.

He further said, “The bottom line is that I want fair competition with China, not conflict, and we’re in a stronger position to win the economic competition of the 21st century against China or anyone else because we’re investing in America and American workers again finally.”

In the same address, Biden also said that he has instructed US Trade Representative Katherine Tai to investigate trade practices by China in steel and aluminum sectors. He further said the tariffs on Chinese steel and aluminum imports could be tripled if the investigation finds unfair practices.