President Joe Biden is poised to announce a substantial hike in U.S. tariffs on Chinese clean energy technologies, including a rise from 25% to 100% on electric vehicles.

The tariff increase is designed to safeguard American industry and employment, with particular emphasis on bolstering the US auto industry's shift from fossil fuel-based vehicles to electric ones.

The administration's strategy echoes former President Trump's concerns over the impact of inexpensive Chinese EVs on the American market.

Exclusion of Chinese EVs from the US market is predicted to redirect trade flows towards other regions such as Europe, South East Asia, and Australia.

Experts suggest the need for a balanced policy that fosters a US and allied supply chain, especially for critical components like EV batteries.

Investors are cautioned to assess the long-term effects on electric vehicle companies, like Lucid, which might not gain directly from the new tariffs on Chinese competitors.

China has responded to the proposed tariff increases by threatening retaliatory measures and pledging to protect its economic interests.

The announcement of the increased tariffs is anticipated to be made public within the week, potentially as early as Tuesday.