On May 14, U.S. Trade Representative Katherine Tai announced further action on Section 301 tariffs after her four-year legislative judgementincluding a new focus on Chinese solar products.
The 301 tariffs were initiated in 2018 by the Trump administration in response to a finding that “China’s actions, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden or restrict U.S. commerce.” Section 301 of the Commercial Act 1974 differs of Article 201, as it does not require specific petitions from companies. The President can initiate 301 tariffs with support from the Office of the US Trade Representative (USTR).
When the Biden administration took office in 2021, new U.S. Trade Representative Katherine Tai said she would keep all options open, including launching new investigations under Section 301 trade law, according to Reuters. In January 2024, four bipartisan senators asked President Biden for more sec. 301 duties on the import of Chinese-made solar wafers, cells and modules.
Now President Biden has appointed Rep. Tai ordered to add or increase tariffs on certain Chinese products, including:
- Electric vehicles – increased to 100% by 2024
- Solar cells (assembled or not into modules) – increased to 50% in 2024
- Lithium-ion batteries for non-electric vehicles – increased to 25% by 2026
- Steel and aluminum products — increased to 25% by 2024
- Semiconductors — increased to 50% by 2025
The report says China has focused on solar products, lithium-ion batteries and electric vehicles for export growth in recent years. The government wants to combat the new “big three” with these new rates.
“For many of the sectors covered by these proposed tariff increases, the United States has made significant investments, including through initiatives such as the IRA and the Bipartisan Infrastructure Law,” the report said. “This legislation aims to improve American economic competitiveness, innovation and productivity through investments in American manufacturing and technology in strategic sectors. The proposed adjustments also complement these investments.”
Chinese solar energy production equipment now falls under these categories, but the government plans to temporarily exclude equipment used for domestic solar panel production from the tariffs.
“President Biden also directs Ambassador Tai to establish an exclusion process for machinery used in domestic manufacturing and to specifically prioritize the exclusion of certain solar energy production equipment,” it said press release. is reading.
Next week, USTR will publish a Federal Register notice announcing procedures for interested parties to comment on the proposed changes and information on an exclusion process for machines used in domestic manufacturing.
The Solar Energy Manufacturing Coalition for America (SEMA).a group of American solar manufacturers, celebrated the update.
“While we are still digging into the details, we are pleased to see the Biden administration taking a step to strategically realign the 301 rates to help onshore U.S. solar manufacturing and solar manufacturing workers to support. As America works to build out production in key clean energy supply chains to reduce the country’s dependence on China’s supply chains, we must use every tool at our disposal to boost America’s solar manufacturing industry.” , said Mike Carr, SEMA Executive Director. in a press statement.
“The administration has made the right decision to strengthen protections for solar energy components we plan to build in the US. While no action can end the years of concerted effort to dominate this industry, including in production equipment and heavily subsidized production by Chinese-headquartered companies. in Southeast Asia, we are encouraged by this indication of the Biden administration’s commitment to using all the tools at their disposal in a targeted and strategic manner. We are hopeful that next steps, including enacting the Inflation Reduction Act’s domestic content rules and trade enforcement, will come soon to level the playing field and ensure that American solar workers have a real chance at fair competition. ”
Updated at 12:41 PM ET to reflect that the exclusions for PV production equipment are temporary.
