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Ahead of her visit to China, Treasury Secretary Janet Yellen announced that the US is contemplating imposing new tariffs and other trade barriers against China. This initiative aims to shield American industries from the adverse impacts of Beijing’s accelerated production activities.

While speaking to reporters in Alaska, Yellen said, “We are trying to nurture an industry in, for example, solar cells, electric batteries, electric vehicles.” She added, “I wouldn’t want to rule out other possible ways in which we would protect them.”

Yellen also addressed the broader impact of China’s economic policies, stating, “We’re concerned the spillover of Chinese subsidies to these industries are happening in the United States and other countries as well.” She added that this issue extends beyond the US, affecting countries like India, Japan, Mexico, and various European nations, all of which are experiencing similar challenges due to China’s aggressive expansion in key industries.

This comes as the Biden administration has been discussing taking more measures to counteract China’s economic moves, which are attempting to dominate the global market by supplying cheaper products. According to Yellen, this tactic is diluting the demand for products from competing nations, thereby impacting the United States and its industries.

One example is in the electric vehicle industry, with Chinese-made brands posing a significant threat to electric automakers in the United States. BYD, a Chinese electric vehicle company, competes directly with Tesla, which offers a vehicle comparable to Tesla’s Model 3. BYD’s ‘Atto 3’ model is roughly $40,570, equivalent to Tesla’s Model 3 at $48,740.