The United States is increasing tariffs on electric cars from China from 25% to 100%, the White House said on Tuesday as part on a crackdown on Chinese imports.
The US government is also imposing new or significantly increased tariffs on solar cells, semiconductors, harbour cranes and certain medical products such as protective masks.
"Today’s announcement reflects President Biden’s commitment to always have the back of American workers. When faced with anticompetitive, unfair practices from abroad, the president will deploy any and all tools necessary to protect American workers and industry," a White House statement said.
China accused the Biden administration of electioneering ahead of November's US vote and threatened retaliation.
"The US should immediately correct its wrong practices and cancel the additional tariffs imposed on China," a statement from the Beijing Ministry of Commerce said.
China will "take resolute measures to defend its own rights and interests" after the US decided to take this step due to "domestic political considerations."
The White House believes the measures are needed because China is flooding global markets with artificially cheap exports.
US President Joe Biden has acted despite striving for a stable relationship with Beijing, Lael Brainard, director of the National Economic Council, told journalists.
She said Biden had seen in his birthplace of Scranton, Pennsylvania, what happens when production moves to other countries and that is why he wants to ensure fair competition.
Elon Musk, chief executive of US-based electric car firm Tesla, has also been among those warning that the Chinese manufacturers have an unfair advantage.
According to the US government, imports from China totalling $18 billion are affected by the new measures.
The decisions have been taken following a statutory four-year review of existing tariffs by US Trade Representative Katherine Tai.
"President Biden is directing me to take further action to encourage the elimination of the People’s Republic of China’s unfair technology transfer-related policies and practices that continue to burden U.S. commerce and harm American workers and businesses," Tai said in a statement.
Biden has made tens of billions of dollars available for investments in the chip industry, infrastructure and manufacturing, the White House said, and this is the latest move to help US companies.
Biden's predecessor Donald Trump, who will face him in November's election, imposed the original tariffs on imports from China during his four-year term.
The European Commission reacted cautiously to the new tariffs, with spokesman Olof Gill saying the European Union executive would "study these tariffs and any impact they may have on the EU."
The commission has its own investigation into whether China is distorting the electric vehicle market, about which there is "no update at this moment in time," the spokesman added at a press conference.
When asked whether the decision could affect Chinese battery and car factories being built in Hungary, Gill said: "I don't think it's for us today to talk about what may or may not be happening as regards Chinese investment in Europe at this point."
German Chancellor Olaf Scholz also did not want to rush to conclusions.
During a visit to Stockholm, Scholz said there had to be a "mutual exchange" between the EU and China.
"European manufacturers are successful on the Chinese market and also sell a large number of vehicles produced in Europe to China," he said after a meeting with Swedish Prime Minister Ulf Kristersson.
In addition, 50% of the electric cars imported from China come from Western brands that produce there, Scholz added.