US delays final decision to raise tariffs on Chinese-made electric vehicles

Photo of author

By Maya Cantina

US delays final decision to raise tariffs on Chinese-made electric vehicles

WASHINGTON — The Biden administration on Friday again delayed announcing its final determinations for major U.S. tariff increases on Chinese-made goods. electric vehiclesbatteries, semiconductors and solar cells, saying it will make a decision public in the coming days.

A spokesperson for the Office of the U.S. Trade Representative said the agency “continues to develop a final determination on proposed modifications” to tariffs on Chinese goods imposed by then-President Donald Trump in 2018 and 2019.

The statement came shortly after White House National Security Adviser Jake Sullivan returned to Washington following several days of talks with senior Chinese officials in Beijing, including an Aug. 29 meeting with Chinese President Xi Jinping where both sides stressed the need to manage the U.S.-China relationship.

“USTR continues to develop a final determination on the proposed modifications of the actions in the investigation under Section 301 of the Acts, Policies, and Practices of the People’s Republic of China Relating to Technology Transfer, Intellectual Property, and Innovation,” an agency spokesperson said in a statement.

“As USTR continues this work, we expect to make the final determination public in the coming days,” the spokesperson said.

Initially, the higher duties of 100% on electric vehicles, 50% on semiconductors and solar cells and 25% on lithium-ion batteries and essential minerals, steel and aluminum, ship-to-shore cranes and syringes were due to take effect on Aug. 1.

But the agency on July 30 delayed implementation until sometime in September, saying it needed more time to study more than 1,100 public comments from industry. It set a new deadline of Aug. 31, which was pushed back further by Friday’s announcement.

The easing of tariffs is the administration’s first major trade decision since Vice President Kamala Harris emerged as the Democratic presidential nominee after President Joe Biden stepped down in late July.

The tariff reduction is likely to draw criticism from Republicans that Harris is taking a softer stance on trade with China in a campaign where Trump promised to hit Chinese imports with tariffs of up to 60%. But many industries and some members of Congress have raised concerns about higher costs.

EV battery makers including Ford Motor Co. have asked U.S. trade officials to ease a proposed 25 percent tax on graphite used in battery anodes because they are still heavily dependent on Chinese supplies. Port operators have said their costs for Chinese cranes under contract would increase, and there are no U.S. producers of the giant port cranes.

Source link

Leave a Comment