The Biden administration has finalized huge tariff hikes on Chinese electric vehicles, lithium batteries, solar panels, and other imports through the US Trade Representative. The tariffs include medical masks and syringes, raising already expensive medical costs in America. After being informed of the results of a multi-year review of the Section 301 Investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, President Biden instructed the Trade Representative to review, then increase tariffs as instructed.

America has lost its manufacturing prowess in many fields due to businesses importing cheaper goods from countries such as China and consumers mostly refusing to buy more expensive made-in-America alternatives. As a result, an earthquake thousands of miles from America can threaten production of iPhone CPUs and Nvidia GPUs.

America is also unable to produce certain products to meet current demand. This includes making electric vehicles and lithium batteries at a price consumers can afford. Chinese car buyers can purchase a BYD Seal EV for $10k, but poorer Americans can find nothing cheaper than a $29k Nissan Leaf, which is $11k more than the cheapest gas vehicle, the Nissan Versa.

The finalized tariffs will prevent Americans from enjoying $10k Seal EVs as well as inexpensive solar panel systems for their homes. Chinese-made EV buses are also hit by the 100% tariff. The 50% tariff on solar cells and modules will also increase electric bills across America as electric companies attempt to go green by adding commercial solar energy generation sites.

Buyers of EVs such as Tesla will be hit by a 25% tariff on imported batteries, so a $20k Tesla battery pack might soon cost $25k. Although Tesla is attempting to make cheaper battery packs in America, the majority of its battery cells are still imported. The electric motors in EVs will also become more expensive due to a 25% tariff on permanent magnets, metals, and critical minerals used to make them.

America simply does not have the raw material, processing, or production capability to meet the majority of demand for the items placed on tariff. During the COVID-19 pandemic, America was unable to manufacture enough masks to meet domestic demand and was forced to import millions of masks. China remains the only country in the world with the ability to source sufficient raw materials and ramp up production to meet American demand.

Americans already face the most expensive medical care system in the world, with the highest per capita spending. The tariffs will add further insult by increasing the cost of masks by 50% and medical gloves and syringes by 100%. This will impact patients, including low-income diabetics who need daily insulin injections.

The tariffs will increase as follows:

• 2024 – September 27th
  • 100% Electric vehicles (EV)
  • 100% Medical - Syringes and needles
  • 50% Solar cells and modules
  • 25% EV lithium batteries
  • 25% PPE – Face masks
  • 25% non-lithium-ion battery parts
  • 25% Critical minerals
  • 25% Steel and aluminum products
  • 25% Port cranes (ship-to-shore)

• 2025 – January 1st
  • 50% Medical gloves
  • 50% Semiconductors

• 2026 – January 1st
  • 100% Medical gloves
  • 50% PPE – Face masks
  • 25% Non-EV lithium-ion batteries
  • 25% Natural graphite
  • 25% Permanent magnets

Readers should stock up on face masks, medical gloves, and insulin syringes before price hikes occur. Patients depending on powered medical equipment such as oxygen concentrators should also consider buying spare batteries and a lithium backup generator.