The US finalizes tariff hikes on more green technology imports from China
The United States on Wednesday tightened tariff hikes on more Chinese imports, including crucial solar panel components, capping recent efforts by the world’s largest economy to protect its growing green energy sector.
The latest measures announced by the U.S. Trade Representative’s office limit a review of tariffs imposed during newly elected President Donald Trump’s first administration.
Tariffs on solar wafers and polysilicon will double to 50 percent in January, while those on certain tungsten products will rise from zero to 25 percent.
“The tariff increases announced today will further weaken the People’s Republic of China’s harmful policies and practices,” U.S. Trade Representative Katherine Tai said in a statement.
The actions, she added, will complement domestic investments made under the outgoing administration of President Joe Biden to boost the United States’ clean energy economy.
In May, the White House announced sharp tariff increases on Chinese goods, targeting key sectors such as electric vehicles, semiconductors, batteries and solar cells.
This provoked fierce opposition from Beijing.
Wednesday’s announcement follows on from previous efforts.
Raising tariffs on three additional lines of tungsten products was seen as key to helping U.S. industries, including the aerospace and defense sectors, according to a release from the USTR office.
“Continued dependence on China for tungsten products leaves U.S. supply chains vulnerable and endangers U.S. national security,” the statement said.
It claimed that Chinese imports have undercut U.S. domestic production, and that higher tariffs will make domestic producers more competitive.
Meanwhile, solar wafers and polysilicon are used in the production of solar cells.
“While rising tariffs may initially lead to higher prices, the tariffs are necessary to allow domestic producers to compete against China’s massive overcapacity, defend recent investments and encourage more domestic production,” the statement said.
Biden has taken a targeted approach when it comes to tariff hikes on Chinese goods, although he also has not reversed increases imposed during Trump’s first term.
At the time, Trump was engaged in an escalating tariff war with Beijing.
Trump’s return to the White House next month could once again raise the temperature between the world’s two largest economies – with the newly elected president already threatening sweeping tariffs on all imports, and especially high tariffs on Chinese goods.
