Biden Administration Finalizes Steep New Tariffs on China-Made EVs, Batteries and Ship-to-Shore Cranes

The Biden administration has issued a final sign-off on an aggressive set of tariffs levied against China-made industrial products, now set to go into effect on Sept. 27.

More than a month after it first deferred the implementation of a 100-percent tax on electric vehicles, a 50-percent tariff on semiconductors and solar cells, and a 25-percent duty rate for lithium-ion batteries, aluminum, steel and ship-to-shore cranes as a part of the president’s economic plan, the Office of the U.S. Trade Representative (USTR) announced its final tariff modifications.

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On Friday, USTR Ambassador Katherine Tai said the plan presented by President Biden in May has been largely adopted, with several updates made to strengthen the actions to protect U.S. businesses and workers from unfair trade practices perpetuated by China. The decision came after the review of more than 1,100 public comments.

“Today’s finalized tariff increases will target the harmful policies and practices of the People’s Republic of China that continue to impact American workers and businesses,” she said. “These actions underscore the Biden-Harris Administration’s commitment to standing up for American workers and businesses in the face of unfair trade practices.”

The USTR said the steep new duties will improve the effectiveness of existing Section 301 tariffs in “achieving the objectives of the [Section 301] investigation”—to put pressure on the Asian superpower to halt certain unfair trade practices like intellectual property theft.

The agency said it considered other actions that could possibly be taken, as well as the potential impacts that the tariffs could have on the U.S. economy.

“These updates do not reflect further consideration or alteration of the review’s finding that, while the PRC had changed some specific unfair measures, the PRC’s harmful forced technology transfer practices—in particular its cyber theft and industrial espionage—have continued, and in some instances, worsened,” the USTR wrote in a statement.

Updates featured in Friday’s announcement include new timing and rates for duties on personal protective equipment (PPE) like face masks and medical gloves, as well as medical necessities like needles and syringes. The plan also includes an exclusion for ship-to-shore cranes ordered before May 14, 2024 and a modification of the coverage of proposed exclusions for solar manufacturing equipment.