U.S. Tariff Increases on Chinese Imports Delayed

By David Shepardson

WASHINGTON (Reuters) – The U.S. Trade Representative’s office announced on Tuesday that some steep U.S. tariff increases on various Chinese imports, including electric vehicles (EVs), their batteries, computer chips, and medical products, will be delayed by at least two weeks.

The USTR stated in May that these tariffs were expected to take effect on August 1. However, the office is still reviewing 1,100 received comments and now anticipates issuing a final determination in August, with new tariffs expected to take effect approximately two weeks after this final ruling.

In May, President Joe Biden decided to maintain tariffs imposed by his Republican predecessor, Donald Trump, while significantly increasing others, including a quadrupling of import duties on Chinese EVs to more than 100% and doubling semiconductor duties to 50%.

USTR sought public input on whether a proposed 25% duty on medical masks and gloves, and a planned 50% tariff on syringes, should be adjusted higher.

Washington is investing hundreds of billions in clean energy tax subsidies to cultivate U.S. industries in EVs, solar, and other sectors, addressing concerns that China’s state-driven surplus production threatens U.S. companies. The tariffs aim to safeguard American jobs against an influx of inexpensive Chinese imports.

These measures impact $18 billion in currently imported Chinese goods, encompassing steel, aluminum, semiconductors, electric vehicles, critical minerals, solar cells, and cranes, according to the White House. The EV-related figure may have more of a political than a practical effect in the U.S., where imports of affected Chinese EVs are minimal due to existing vehicle tariffs.

The Port Authority of New York and New Jersey indicated that the tariffs would inflate the cost of each crane by $4.5 million, creating a significant strain on the port’s limited resources.

The two largest categories of targeted imports from China in 2023 consist of lithium-ion batteries, accounting for $13.2 billion, as per data from the U.S. Census Bureau.

In 2023, the U.S. imported $427 billion in goods from China while exporting $148 billion to the country, leading to a trade gap that has persisted for decades and become an increasingly sensitive topic in Washington.