In a concerted effort to address ongoing trade issues, U.S. Trade Representative Katherine Tai and President Joe Biden have announced significant measures to counter China's unfair trade practices. These actions follow the statutory four-year review of Section 301, assessing tariffs on Chinese goods due to unfair technology transfer policies and practices.
The review concluded that while some progress has been made, China's unfair practices continue to burden U.S. commerce. The tariffs have prompted China to address some issues, but more stringent measures are needed.
Ambassador Tai outlined several proposed tariff modifications:
Increased Rates: Tariffs on products like electric vehicles, semiconductors, and solar cells will see significant increases.
Battery parts (non-lithium-ion batteries): Increase rate to 25% in 2024
Electric vehicles: Increase rate to 100% in 2024
Facemasks: Increase rate to 25% in 2024
Lithium-ion electrical vehicle batteries: Increase rate to 25% in 2024
Lithium-ion non-electrical vehicle batteries: Increase rate to 25% in 2026
Medical gloves: Increase rate to 25% in 2026
Natural graphite: Increase rate to 25% in 2026
Other critical minerals: Increase rate to 25% in 2024
Permanent magnets: Increase rate to 25% in 2026
Semiconductors: Increase rate to 50% in 2025
Ship to shore cranes: Increase rate to 25% in 2024
Solar cells (whether or not assembled into modules): Increase rate to 50% in 2024
Steel and aluminum products: Increase rate to 25% in 2024
Syringes and needles: Increase rate to 50% in 2024
New Exclusions: Establishing an exclusion process for machinery used in domestic manufacturing, prioritizing solar manufacturing equipment.
These actions aim to:
Encourage the elimination of China's unfair practices.
Protect American workers and businesses.
Strengthen U.S. supply chain resilience.
President Biden is directing the USTR to increase tariffs under Section 301 on $18 billion of imports from China to protect American workers and businesses. This includes strategic sectors such as steel, aluminum, semiconductors, electric vehicles, and solar cells.
Economic Impact: The Biden-Harris administration's Investing in America agenda has catalyzed over $860 billion in business investments. This includes significant investments in industries like EVs, clean energy, and semiconductors, creating new American jobs and promoting economic security.
Ambassador Tai's recommendations and President Biden's directives underscore the administration's commitment to using all available tools to promote fair trade practices and safeguard American economic interests. Public comments on these modifications will be invited soon, reflecting a transparent and inclusive approach to policy-making.
For more detailed information, visit the official press releases from USTR and the White House.