The Biden administration announced today that it will raise tariffs on $18 billion of Chinese goods. KraneShares Senior Investment Strategist Anthony Sassine and Macrolens Chief Strategist Brian McCarthy join Market Domination to discuss the move and how it could affect US-China relations.

"This is a marginal hit to China," McCarthy says, adding, "I think the president is correct that they're unlikely to respond." He explains that Chinese equities haven't responded over the last few days despite anticipating the Biden administration's move, saying, "It's more style than substance as far as the macro story goes."

Sassine believes the tariffs will "hurt the US consumer more than anybody else." While the move is designed to strengthen key US industries and bring back jobs, he says it'll "delay climate policy and probably increase tensions with China."

McCarthy adds, "I would say it's always suboptimal when you have to do something like this, but for many, many years now, we've tried to get China to play by the established rules." The tariffs are expected to benefit domestic electric vehicle companies like Tesla (TSLA) and boost charging companies.

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This post was written by Melanie Riehl