In March, China launched dispute settlement proceedings against the US at the WTO, accusing Washington of "discriminatory" EV subsidies.
Last week, US President Joe Biden unveiled plans to quadruple tariffs on Chinese EVs.
“The US has imposed major new tariffs on Chinese EVs. Trade friction, especially between the US and China, is increasing rapidly,” Vembu posted on social media platform X.
“At least, now no one will lecture India about “WTO norms”. “More seriously, it is the inevitable consequence of decades of excessive monetary madness, which led to rising trade deficits and debt,” he explained.
Biden plans to increase tariffs on Chinese EVs this year from 25 percent to 100 percent and on lithium-ion EV batteries from 7.5 percent to 25 percent.
"The conventional wisdom has been that 'the deficit doesn't matter.' This is a flawed idea that is now undermining global trade,” Vembu said.
The Biden administration also plans to increase tariffs on solar cells from 25 percent to 50 percent, and on some steel and aluminum products from 7.5 percent to 25 percent.
Last week, US President Joe Biden unveiled plans to quadruple tariffs on Chinese EVs.
“The US has imposed major new tariffs on Chinese EVs. Trade friction, especially between the US and China, is increasing rapidly,” Vembu posted on social media platform X.
“At least, now no one will lecture India about “WTO norms”. “More seriously, it is the inevitable consequence of decades of excessive monetary madness, which led to rising trade deficits and debt,” he explained.
Biden plans to increase tariffs on Chinese EVs this year from 25 percent to 100 percent and on lithium-ion EV batteries from 7.5 percent to 25 percent.
"The conventional wisdom has been that 'the deficit doesn't matter.' This is a flawed idea that is now undermining global trade,” Vembu said.
The Biden administration also plans to increase tariffs on solar cells from 25 percent to 50 percent, and on some steel and aluminum products from 7.5 percent to 25 percent.
