Impact of U.S. Tariffs on Consumers and Industries

President Biden announced new tariffs on $18 billion worth of Chinese goods, including lithium batteries and electric vehicles. Tariffs are a tax on imports that could potentially lead to higher prices for consumers. The goal is to support U.S. manufacturing jobs, but research shows that tariffs can be costly and may not necessarily create jobs. Tariffs have become more popular politically, despite economists generally not being in favor of them.

President Biden's new tariffs on imports from China

President Biden is preparing to announce new tariffs on imports from China, aligning with his policy priorities on climate, technology, and manufacturing. He plans to keep Trump-era tariffs in place while adding strategic items to the list.

Changes in Germany's Top Trading Partners

The United States is becoming Germany's top trading partner, surpassing China due to various factors like strong U.S. growth, decoupling from China, and increased competition from Chinese firms. Germany's new China strategy aims to de-risk from China while maintaining a partnership.

Biden's False Claim on Trade Deficit

Biden falsely claimed during his State of the Union Address that the U.S. is exporting products instead of importing foreign products, implying the trade deficit had been reduced. In reality, the U.S. still ran a goods and services trade deficit of nearly $779.8 billion last year, higher than under any prior president.