{"id":14140,"date":"2024-05-31T06:30:41","date_gmt":"2024-05-31T06:30:41","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=14140"},"modified":"2025-04-23T09:00:32","modified_gmt":"2025-04-23T09:00:32","slug":"implications-of-tariffs-for-chinas-green-products","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/implications-of-tariffs-for-chinas-green-products\/","title":{"rendered":"America’s new tariffs on China\u2019s \u2018green\u2019 products: 5 experts weigh in"},"content":{"rendered":"

Five experts share their takes with Dialogue Earth<\/a> (formerly China Dialogue)<\/strong> as the US hikes its tariff on Chinese EVs, solar panels and more<\/h2>\n

On 14 May, the US government announced huge increases in tariff rates on a range of Chinese exports, most of which are forms of \u201cgreen\u201d or low-carbon technologies. The measures, which will come into effect on 1 August, include a 100% tariff on the value of electric vehicles, 25% on lithium-ion batteries and 50% on solar cells. This means importers of Chinese goods from the affected categories, which also include medical products, steel and aluminium, and ship cranes, will have to pay the specified percentages to the US government as tax.<\/p>\n

Besides representing a new area of tension between the US and China, the tariff hikes have implications for global energy transitions, climate diplomacy, Latin American manufacturing and trade relations, and the very nature of technological progress in the 21st century.<\/p>\n

Dialogue Earth spoke to experts from Europe, China and Latin America on their assessment of these issues and more.<\/p>\n

\"launchpad<\/a><\/p>\n

Belinda Sch\u00e4pe
\nIndependent expert and advisor on Chinese climate policy and EU-China relations<\/h4>\n

The recent US tariffs on green technologies mark the next stage in a trade war with China that could slow down an already delayed energy transition in the US. A race to the top in production would be welcome, but current US policies might not have the anticipated effect. Green technologies in the US will likely become more expensive due to the new tariffs, despite the large subsidies of the Inflation Reduction Act, hampering global efforts to tackle climate change. The EU should not compromise on its climate targets; instead, it should find its own way of handling China\u2019s dominance in green technologies.<\/p>\n

The EU needs to carefully balance its objectives of achieving resilient supply chains and climate resilience. Hastily cutting China out of green technology supply chains could jeopardise the EU\u2019s climate objectives. This requires a pragmatic look at the threat from Chinese green technologies: while dependence on China for some goods may create economic and strategic risks, it may not for others. To ensure a smooth energy transition, some reliance on China may be unavoidable in the short- and medium-term, given its dominance in international supply chains. Diversifying these supply chains will require global partnerships, particularly with countries in the Global South, backed by financial firepower and innovation, rather than new tariffs.<\/p>\n

With tensions between the US and China escalating, EU-China relations play a pivotal role in maintaining continuity in climate efforts and diplomatic dialogue. A looming tit-for-tat between China and the US on green technologies risks undermining global climate cooperation. Under a second Trump administration, the US might abandon its climate commitments \u2013 and with that, one of its few active working groups with China. If US-China climate engagement falls apart, the onus will fall on the EU to work more closely with China towards advancing global climate efforts and to hold China accountable for its climate commitments. The EU should stand ready to maintain its climate leadership position, while carefully navigating trade tensions.<\/p>\n