Tariffs on Chinese Imports Locked in to Protect Strategic U.S. Manufacturing Sectors

The Biden administration continues its efforts to protect U.S. manufacturing and the domestic development of electric vehicles against Chinese manufacturers and suppliers with steep tariffs on EVs and other components. These tariffs of 100 percent on Chinese EVs, 50 percent on solar cells and 25 percent on steel, aluminum, EV batteries and key minerals would become effective on September 27. The increased tariffs follow legislation earlier this year that invoked a “melted and poured standard” to prevent Chinese companies moving products through Mexico to avoid them.

Trump tariffs unchanged, additional tariffs added

The latest tariff increases come on the heels of a two-year review of tariffs imposed during Donald Trump’s tenure and maintained the top-line duty increases announced by President Biden in May, of 25 percent on lithium-ion batteries, minerals and components, with those for EVs taking effect on September 27 and those for other devices on January 1, 2026. The announcement also left Trump tariffs on over $300 billion worth of Chinese goods ranging from toys and clothing to Wi-fi routers and industrial machinery at rates of 7.5 percent to 25 percent intact.

Disruption expected

Automakers have decried the action amid pleas for lower tariffs on graphite and critical minerals used for EV battery production, citing reliance on Chinese supplies. The auto industry believes that the increase tariffs will disrupt supply chains especially for semiconductor-intensive products while being ineffective in stopping China’s technology transfer and industry dominant practices. The technology industry followed suit stating that tariffs are extremely costly for Americans with little or no impact on Chinese trade policies and practices, calling them blunt and ineffective.

09/25/2024