President Joe Biden has instructed the Office of the US Trade Representative to impose higher tariffs, particularly a 100 percent rate on electric vehicles, on $18 billion of Chinese goods.

The tariff hike is designed to shield U.S. solar manufacturing from Chinese market dominance, signaling a turn towards a more protectionist US trade stance.

This policy has garnered approval from labor organizations, but has been met with disapproval from climate advocates and economists.

China is anticipated to respond with countermeasures, possibly affecting American car manufacturers, luxury brands, and farmers.

Analysts predict First Solar will gain the most from these measures, while others may face difficulties adhering to the new domestic content rules.

The possibility of Donald Trump’s return to the presidency in 2025 adds to the prevailing uncertainty affecting trade policies and the US-China economic relationship.

The overall US-China relationship is experiencing heightened strains, with businesses being advised to ready themselves for increased trade risks.