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According to the US Trade Representative’s office, some of the steep US tariff increases on Chinese imports, including electric vehicles, computer chips, and medical products, will take effect on August 1.
These tariffs, which President Biden has put back in place after what he terms China having an “unfair” advantage over US businesses, will see significant tariff increases on Chinese electric vehicles (100% tariff) and semiconductors (50% tariff)
The US Trade Representative (USTR) announced a 30-day public comment period ending June 28, seeking feedback on the economic impact of the proposed tariffs and whether a 25% duty on medical facemasks, gloves, and syringes should be increased. The notice includes tariff codes for 387 product categories affected, along with new duty rates and implementation dates, with some tariffs starting in 2025 and 2026.
The White House stated that lithium-ion batteries are the largest category of targeted imports, accounting for $13.2 billion in 2023. Duties of 25% on the $10.9 billion non-vehicle lithium-ion battery category will start in 2026. US Trade Representative Katherine Tai justified the tariffs by accusing China of intellectual property theft and has recommended tariff exclusions for certain industrial machinery imports.
China has condemned the tariff hikes and promised to take “resolute measures” to protect its interests, including launching an anti-dumping probe on industrial plastics from the US and other regions.
Digging Deeper:
The proposed tariffs target products where China aims for dominance or sectors where the US has made significant investments. Washington’s investments in clean energy tax subsidies for developing US industries such as electric vehicles and solar power are at risk from China’s state-driven production. The tariffs aim to protect US jobs from an influx of cheap Chinese imports, affecting $18 billion worth of goods, including steel, aluminum, semiconductors, and solar cells.
