The US Trade Representative has decided that it will expand tariffs on solar energy components, batteries, semiconductors, steel and electric vehicles from China.
The U.S. Trade Representative decided to maintain Section 301 tariffs on goods shipped from China.
The rates include 25% on batteries and steel, 50% tariffs on semiconductorsand a 100% tariff on Chinese EV imports. The agency said many of the tariffs will take effect on September 27.
The Section 301 tariffs categorize semiconductors into two main groups: polysilicon for solar panels and silicon wafers, which are often used in computers.
The recurrence of tariffs reflects the Biden administration’s “tough, targeted” approach to tariffs, as described to Reuters by Lael Brainard, one of the White House’s top economic advisers.
“Electricity manufacturers are meeting the growing demand for clean energy goods by reshoring, new-shoring, near-shoring and friend-shoring critical supply chains. NEMA members have invested more than $12 billion to expand the production of clean energy and advanced technology goods in the United States across the electric grid, industrial, built environment and mobility sectors.
“NEMA supports government policies that encourage greater supply chain resilience as the electrical industry proactively diversifies its supply chains and reduces its dependence on China as an import source. However, these tariff increases come at a critical time as domestic producers seek to prioritize and accelerate the energy transition while balancing ongoing global supply chain challenges that hinder competitiveness. USTR’s announced rate increases will have a disproportionate impact on the electric industry by increasing estimated Section 301 duties on electrical industry goods from $1.3 billion in 2023 to $4.0 billion in 2026.” Fred Fischer, Director of Global Policy, National Electrical Manufacturers Association (NEMA).
In addition, the United States International Trade Commission (USITC) has issued a ruling expand imports of crystalline solar cells from China to the US. The agency determined that repealing anti-dumping and countervailing duties (AD/CVD) on solar cells from China would result in a continuation or recurrence of significant harm to U.S. companies.
The ruling concludes a five-year review of the rates and maintains them at their current rates. A report from the ITC addressed the rate finding will be published here on October 18, 2024.
“This is an important step in aligning U.S. industrial policy and the IRA’s objectives with U.S. trade policy. Both an increase in tariffs on Chinese exports of solar energy components and a temporary tariff reduction on certain solar equipment will boost US production and send an important signal to China. The provided and proposed tariff increases for solar components from China will, in the words of USTR: defend the United States against China’s policy-driven non-market excess capacity, which has led to extreme concentration of production in China and underpriced exports.” Mike Carr, executive director of the Solar Energy Manufacturers for America (SEMA) coalition.
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