The United States on Friday announced tariff increases on billions of dollars worth of Chinese goods, with a 100 percent tariff on electric vehicles and a 25 percent tariff on electric vehicle batteries set to go into effect in two weeks.
In May, the White House announced a sharp increase in tariffs targeting key sectors including electric vehicles, semiconductors, batteries and solar cells, prompting a sharp response from Beijing.
It also comes ahead of the November presidential election, in which both Democrats and Republicans are seeking to show a tough stance on China as competition between the two countries intensifies.
“The final tariff increases announced today will address the People's Republic of China's harmful policies and practices that continue to impact American workers and businesses,” U.S. Trade Representative Katherine Tai said.
In addition to the tariff increases that will take effect later this month, including on solar cells, the U.S. Trade Representative's office confirmed that a 50 percent tariff on semiconductors will go into effect in 2025 — a sharp increase from previous years.
According to the USTR, a 25 percent tariff on lithium-ion batteries not intended for electric vehicles will go into effect in January 2026.
The tariff hikes on about $18 billion worth of goods come after a review of tariffs imposed under then-President Donald Trump that affected about $300 billion worth of Chinese goods.
The measures taken this year will affect both goods already subject to Trump's previous tariffs and additional ones.
But the Biden administration's actions go beyond green energy technologies and affect products such as faucets and medical devices.
Tariffs on dockside cranes will rise by up to 25 percent this year, according to the U.S. Trade Representative (USTR).
However, the final decision allows for exceptions for Chinese cranes ordered before mid-May if they are delivered by May 2026.
Friday's move provides some breathing room for port operators given that China dominates the industry while the United States works to rebuild its own port crane manufacturing capacity.
On medical supplies, the U.S. Trade Representative (USTR) said it would raise tariffs on medical masks to 50 percent, up from the proposed 25 percent.
However, the introduction of 50 percent tariffs was delayed until 2026 to give time to move away from Chinese sellers.
Taxes will also affect products such as medical gloves.
President Joe Biden's administration has invested heavily in areas such as semiconductor manufacturing and research, and is pushing to spur green investment and is concerned about underpriced exports from China.
The U.S. government also announced Friday that it would take steps to curb a surge in low-cost, duty-free goods amid concerns that Chinese products are being brought in with minimal oversight.
The trade rule is known as de minimis, and foreign shipments are eligible for tax exemption if the fair retail value of the imported goods is $800 or less.
Dateline:
Washington, USA
Story Type: News Service
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