From Watts Up With That?

Essay by Eric Worrall

Climate change news seems to be taking the Chinese line on the tariff issue – but who expected anything different?

Days after climate talks, US slaps tariffs on Chinese EVs and solar panels 

Published on 15/05/2024, 5:21pm

The measures are designed to increase the cost of Chinese goods needed for the energy transition – and could therefore slow the US shift away from fossil fuels

By Joe Lo

Five days after seemingly cordial US-China climate talks, US President Joe Biden has announced he will increase US tariffs on US tariffs, electric vehicles (EVs) and batteries to run them.

Last Wednesday and Thursday, China’s new top climate diplomat Liu Zhenmin travelled to Washington DC for two days of talks with his US counterpart John Podesta, also fresh in the job.

They discussed co-operation on climate issues, including plans for both sides to ramp up renewables, and vowed to “intensify technical and policy exchanges”.

But the day after, with Liu still in the country, the US State Department briefed journalists that Podesta had told Liu that China was producing too many solar panels and lithium-ion EV batteries.

Then on Tuesday, the White House increased tariffs on Chinese EVs, lithium-ion batteries and solar panels, accusing the Chinese government of “unfair, non-market practices” and “flooding global markets with artificially low-priced exports”.

…Read more: https://www.climatechangenews.com/2024/05/15/days-after-climate-talks-us-slaps-tariffs-on-chinese-evs-and-solar-panels/

Regardless of China’s understandable confusion on where they stand with the Bidens and the US renewable industry, I doubt these tariffs will improve the circumstances of US solar manufacturers. There are too many barriers for US solar manufacturers to be globally competitive, such as the USA’s increasingly expensive energy and tough environmental regulations, and the door is still open to imports from other nations with lower manufacturing costs.

President Biden has threatened to extend the tariffs if he becomes convinced Chinese manufacturers are circumventing his tariffs by transshipping solar panels through other nations. I’m sure those other nations being threatened with tariffs will be keen to persuade President Biden that nothing untoward is happening. Perhaps President Biden should send Hunter on a fact finding mission