More details are emerging about US President Biden’s imminent US consumer tax increases. Some of the tax changes are sizable, with suggestions that consumers of electric vehicles from China could be set at over 100%. Steel and aluminum consumers will also pay more to the US Treasury. However, the economic impact is likely to be muted. US President Trump’s taxes on intermediate goods generally squeezed US corporate profits more than they raised consumer prices, and the US is not a big consumer of electric vehicles from China.
