New tariff walls

US tariffs will further increase trade friction

In a move that could significantly increase global trade friction, the US has increased tariffs on several items imported from China, including lithium batteries, critical minerals, semiconductors, and solar cells. However, the most important is a fourfold increase in the tariff on electric vehicles to 100 per cent. Chinese manufacturers have developed significant capability in this sector. Mr Biden is facing a tough re-election campaign, and appears to be behind in the polls in battleground states. Winning back industrial workers to the Democratic Party has long been part of his electoral strategy, and these tariffs should be seen as part