White House announcement on further Section 301 tariff hikes for Chinese imports

USA: 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. MSI's Miami law and specialist member Diaz Trade Law, P.A provides further insight.

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
        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
        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.