US imposes new tariffs on China for EVs, chips, and steel

The Biden administration has confirmed significant tariff increases on various imports from China, set to take effect on September 27. The most notable change is a 100 percent tariff on electric vehicles, which will quadruple from the previous 25 percent. Additional tariffs include 50 percent on semiconductors and 100 percent on needles and syringes, among others. These measures are part of a broader strategy to counteract China's state-driven subsidies and technology transfer policies that have led to overproduction and market dominance. Lael Brainard, the top economic adviser, emphasized that these tariffs aim to protect the U.S. electric vehicle industry and encourage diversification away from reliance on Chinese supply chains. The administration's decision follows a four-year review of existing tariffs, with recommendations to maintain and expand them. The tariffs are seen as necessary to level the playing field for American manufacturers, particularly in the EV sector, which has been significantly impacted by Chinese competition. The U.S. Trade Representative's Office has also announced exemptions for certain imports, such as ship-to-shore cranes purchased before May 14, 2023, to accommodate the lengthy fulfillment process for these orders. Future tariff increases are scheduled for January 2025 and January 2026, targeting various products, including natural graphite and non-EV batteries. Overall, the administration's approach reflects a commitment to bolster domestic industries while addressing perceived unfair advantages held by Chinese manufacturers. This strategy is part of a larger investment in U.S. tax subsidies aimed at developing the domestic EV, solar, and semiconductor sectors.