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[Text/Lai Jiaqi of Observer Network] Two days before the new 301 tariffs imposed by the United States on China officially came into effect, the Office of the United States Trade Representative (USTR) announced on July 30 local time that the time for imposing tariffs on a series of Chinese imported products such as electric vehicles and their batteries, computer chips and medical products will be postponed for at least two weeks.

The tariffs were originally scheduled to take effect on August 1, but according to an announcement on the USTR's website, they received more than 1,100 public comments and will need two weeks to review them before they can make changes and a final decision. The office said they expect to issue a final decision in August.

In May this year, the Biden administration chose to maintain the tariffs imposed by former President Trump and increase tariffs on electric vehicles, lithium batteries, photovoltaic cells, key minerals, semiconductors, steel and aluminum, port cranes, personal protective equipment and other products imported from China, which will affect Chinese goods worth $18 billion. The Biden administration has significantly increased tariffs on China's "targeted strategic products", including tariffs on Chinese electric vehicles from 25% to more than 100%, and tariffs on semiconductors have also been increased to 50%.

The United States is investing hundreds of billions of dollars to develop its own clean energy industry, and in the eyes of the US government, China's "excess capacity in these areas threatens American companies." The White House claims that the tariff increase will "protect American jobs from the threat of cheap Chinese goods."

The Biden administration's decision to impose additional tariffs was criticized by many parties as soon as it was announced. On May 16, the International Monetary Fund (IMF) criticized the US government's move, saying it could damage global trade and economic growth. In the worst case, global gross domestic product (GDP) could be reduced by about 7%.

Bloomberg reported at the time that American companies had borne almost all the costs of the government's tariffs on China. The Port Authority of New York and New Jersey recently told Reuters that tariffs would increase the cost of each crane by $4.5 million, "putting significant pressure on the port's limited resources."

China's Ministry of Commerce and Ministry of Foreign Affairs also responded earlier, saying they oppose the US's politicization of economic and trade issues and abuse of the so-called 301 tariff review procedure. The WTO has long ruled that the 301 tariffs violate WTO rules. Instead of correcting its wrong practices, the US has further increased tariffs, making one mistake after another. The US should earnestly abide by WTO rules and cancel the additional tariffs on China. China will take all necessary measures to defend its own rights and interests.

The U.S. website Foreign Policy published an analysis in May that only 2% of electric vehicles sold in the U.S. last year were made in China, and the imposition of auto tariffs will not cause a serious blow to Chinese companies. From this perspective, these measures are more like a political move, because the Biden administration needs to please blue-collar voters in industrial swing states such as Michigan and Pennsylvania before the election.

At the time, Trump and Biden, who was still a candidate for president, attacked each other over the issue. Trump said Biden was too late to impose tariffs and should have taken these measures at the beginning of his term, while Biden said his predecessor had been "feeding them." Qatar's Al Jazeera pointed out that both US presidential candidates have deviated from the free trade consensus that once dominated Washington.

Until recently, when the US presidential election entered a white-hot stage, both parties did not forget to talk about China in order to attract more votes. After enjoying the poll dividends brought by the presidential debate and the attempted assassination, Trump announced on July 18 local time that he would impose tariffs of 100% to 200% on Chinese electric vehicles. According to an analysis by Barron's, although Harris described tariffs as "costs borne by American families" before the 2020 election, there is now little sign that Harris, who has become a presidential candidate again, will abandon Biden's approach to tariffs or trade restrictions.

The US website Forbes analyzed that the Biden administration uses tariffs in a "small courtyard with high walls" way, and if Trump enters a second term, he may expand this approach to the entire economy and impose a 60% tariff on every item imported from China. According to data from the Peterson Institute for International Economics, a US think tank, this tariff is equivalent to raising taxes on US consumers. If implemented, it would be equivalent to each US household paying an additional $1,700 in taxes. This will lead to soaring inflation.

The report further pointed out that the United States has used tariffs to support sensitive industries for decades, but today none of these industries contributes a meaningful source of employment. When tariffs become part of a permanent economic strategy, it will eventually accelerate a country's decline.

This article is an exclusive article of Observer.com and may not be reproduced without authorization.