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The Office of the U.S. Trade Representative has decided to expand tariffs on solar components, batteries, semiconductors, steel and electric vehicles from China. The tariffs will take effect on September 27.
The Office of the U.S. Trade Representative has ruled to maintain Section 301 tariffs on products shipped from China.
The tariffs include 25% on batteries and steel, 50% tariffs on semiconductors, and a 100% tariff rate on Chinese imports of electric vehicles. The agency said many of the tariffs will take effect on Sept. 27.
The Section 301 tariffs classify semiconductors into two main groups, polysilicon for solar modules and silicon wafers, often used in computing.
The reiteration of tariffs reflects the Biden administrations "tough and selective" approach to tariffs, as described to Reuters by Lael Brainard, a top White House economic adviser.
“Electrical product manufacturers are meeting the growing demand for clean energy goods through offshoring, new offshoring, nearshoring, and friendly offshoring of critical supply chains. NEMA members have invested more than $12 billion to expand clean energy and advanced technology product manufacturing in the United States across the grid, industrial, building and mobility sectors.”
“NEMA supports government policies that foster greater supply chain resilience as the electric industry proactively diversifies its supply chains and decreases its reliance on China as a source of imports. However, these tariff increases come at a critical time when domestic manufacturers are working to prioritize and accelerate the energy transition while balancing current global supply chain challenges that hinder competitiveness. The tariff increases announced by USTR will disproportionately impact the electric industry by increasing assessed Section 301 duties on electric industry goods from $1.3 billion in 2023 to $4 billion in 2026,” said Fred Fischer, NEMA’s managing director of global policy.
In addition, the U.S. International Trade Commission (USITC) ruled to expand imports of crystalline solar cells into the U.S. from China. The agency determined that revocation of the antidumping and countervailing duty (AD/CVD) orders on solar cells from China would result in the continuation or recurrence of material injury to U.S. companies.
The resolution closes a five-year sunset review of tariffs and maintains them at their current rates. An ITC report related to the tariff resolution will be published here on October 18, 2024.
“This is an important step toward aligning U.S. industrial policy and the IRA’s goals with U.S. trade policy. Both the increased tariffs on solar component exports from China and the temporary tariff relief for certain solar equipment will boost U.S. manufacturing and send an important signal to China. The planned and suggested tariff increases on solar components from China will, in the words of the USTR, defend the United States against noncommercial excess capacity driven by China’s policies, which has led to extreme concentration of production in China and below-average priced exports,” said Mike Carr, executive director of the Solar Energy Manufacturers for America (SEMA) coalition. |
