The U.S. government on Friday set steep tariff increases on Chinese imports, including a 100 percent duty on electric vehicles (EVs), to bolster protection of strategic domestic industries from China’s state-driven production overcapacity.
The U.S. Trade Representative’s office (USTR) said many of the tariffs, including a 100 percent duty on Chinese EVs, 50 percent on solar cells and 25 percent on steel, aluminum, EV batteries and key minerals, will take effect on Sept. 27.
The decision, published this Friday but to which he had access Reuters Earlier, it outlined a 50 percent tariff on Chinese semiconductors, which now include two new categories – polysilicon used in solar panels and silicon wafers – starting in 2025.
Adjustments to punitive “Section 301” tariffs on $18 billion worth of goods announced in May by President Joe Biden were minimal and ignored calls from the auto industry to ease tariffs on graphite and critical minerals needed for EV battery production because they remain overly reliant on Chinese supplies.
The USTR kept unchanged the tariff hike to 25 percent from zero on lithium-ion batteries, minerals and components, with the increase for EV batteries taking effect on Sept. 27 and for all other devices, including laptops and cellphones, on Jan. 1, 2026.
Lael Brainard, the White House’s top economic adviser, told Reuters that the decision was made to ensure that the US EV industry diversifies and moves away from China’s dominant supply chain.
According to Brainard, these “tough and targeted” tariffs are necessary to counter China’s state subsidies and technology transfer policies, which have led to overinvestment and overproduction capacity.
China has vowed to retaliate against the “intimidating” tariff hikes, arguing that the success of its EV industry is down to innovation, not government support.
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– 2024-09-19 06:58:14
