A worker assembles an SUV at a car plant of Li Auto, a major Chinese electric vehicle maker, in Changzhou in eastern China's Jiangsu province,  March 27. The Biden administration is announcing plans to slap new tariffs on Chinese EVs, advanced batteries, solar cells, steel, aluminum and medical equipment. AP-Yonhap

Korean exporters, especially makers of electric vehicles (EVs), batteries and solar power equipment, could be some of the biggest beneficiaries of Biden’s new tariffs on China, analysts said.The comments were made after U.S. President Joe Biden increased tariffs on $18 billion worth of various Chinese imports strategically linked to national security, as the world’s largest economy tries to protect its domestic production from cheaper Chinese goods.The new tariff rates, set to take place over the next two years, will range from 100 percent on EVs to 50 percent for solar cells, and 25 percent for all other sectors including steel and aluminum, battery components and critical minerals.As China’s major global competitor in the manufacturing of EVs, batteries and solar parts, Korea’s competitiveness in these supply chains is set to see a major boost in the U.S. market as a result of the new tariffs, analysts pointed out.According to the U.S. International Trade Commission, exports of Korean EVs could rise 10 percent if global tariffs on Chinese EVs are increased 20 percent.

As the Biden tariff plan will triple tariffs for Chinese lithium-ion batteries from 7.5 percent to 25 percent, Korea will also be one of the most direct beneficiaries, as the global battery landscape is essentially dominated by the two countries.Korean companies that use Chinese imported components may face increased costs due to the tariffs, said Liujun Liu, a new energy analyst with a Shenzhen-based capital management company.“But as the world’s second-largest battery supplier, the competitiveness of Korean battery products in the U.S. market is set to improve as Chinese companies temporarily abandon their ambitions to enter the American market amid greater challenges.”Chinese companies are now faced with limited options: either forfeit the U.S. market, or move their manufacturing facilities out of China as well as start joint ventures, Liu pointed out.”As Korean battery manufacturers have lots of U.S. clients, Chinese companies could be incentivized to increase investments in Korea, but it would be challenging for those who already have a large number of orders from China or those who manage major supply chains in China,” she said.Nonetheless, Korea will be the most 온라인카지노 direct beneficiary in its competitiveness.