Today the White House announced sweeping new tariffs on Chinese goods. The tariffs will apply to a range of sectors including semiconductors, steel and aluminum, batteries, and medical products.
Electric vehicles were a focus of the announcement, with tariffs to increase from 25% to 100% this year.
Impacted Industries
The new tariffs apply to $18 billion worth of Chinese imports in the following sectors:
- Steel and aluminum – increase from 0-7.5% to 25% in 2024
- Semiconductors – increase from 25% to 50% by 2025
- Electric vehicles (TVs) – increase from 25% to 100% in 2024
- Batteries
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- Lithium-ion EV batteries – increase from 7.5% to 25% in 2024
- Lithium-ion non-EV batteries – increase from 7.5% to 25% in 2026
- Battery parts – increase from 7.5% to 25% in 2024
- Natural graphite and permanent magnets – increase from 0% to 25% in 2026
- Certain critical minerals – increase from 0% to 25% in 2024
- Solar cells – increase from 25% to 50% in 2024
- Ship-to-shore cranes – increase from 0% to 25% in 2024
- Medical products
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- Syringes and needles – increase from 0% to 50% in 2024
- Certain PPE products – increase from 0-7.5% to 25% in 2024
- Rubber medical gloves – increase from 7.5% to 25% in 2026
Why Now?
The announcement follows a statutorily required two-year government review of "Section 301" duties that were first imposed during the Trump Administration. The Special 301 review considers the current state of global IP protection and enforcement, unfair innovation policies, and market access barriers. In the review, the United States Trade Representative (USTR) must consider the effectiveness of current tariffs, other actions that could be taken, and the overall effects of the tariff actions on the U.S. economy.
The report and the Biden Administration found that while existing tariffs have been effective in encouraging China to take some steps to address unfair trade practices, further action is required.
In the announcement, the Administration alleges that China continues to flood global markets with artificially low-priced exports, harming American businesses.
Diaz Trade Law will continue to monitor the implementation of this announcement and share updates. For more information or questions get in touch with us at 305-456-3830 or info@diaztradelaw.com.
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