U.S. Tariff Hikes on Chinese Goods Delayed

By David Lawder

WASHINGTON (Reuters) – The Biden administration has once again delayed the announcement regarding steep U.S. tariff hikes on certain Chinese goods including electric vehicles, batteries, semiconductors, and solar cells. A decision is expected to be made public in the coming days.

A spokesperson for the U.S. Trade Representative’s Office (USTR) stated that the agency is still finalizing its determination regarding proposed modifications to tariffs on Chinese goods that were imposed during the Trump administration in 2018 and 2019.

This announcement follows the recent return of White House National Security adviser Jake Sullivan from discussions with senior Chinese officials in Beijing, including a meeting with President Xi Jinping. Both sides highlighted the importance of managing U.S.-China relations.

The USTR continues to work on the final determination related to the Section 301 investigation of China’s technology transfer, intellectual property, and innovation practices. The final decision was initially set to release on August 1 but was delayed to September after considering over 1,100 public comments from industry stakeholders. The new deadline of August 31 was also extended.

This decision represents the administration’s first major trade action since Vice President Kamala Harris became the Democratic Party’s presidential nominee following President Joe Biden’s announcement of stepping aside in late July.

Reducing the tariffs could face backlash from Republicans, who may criticize Harris for a perceived soft stance on China just as Trump pledges significant tariff increases on Chinese imports. Concurrently, various industries and congressional members have expressed concerns over increased costs stemming from these tariffs.

Battery manufacturers like Ford Motor Co have asked the USTR to reconsider the proposed 25% duty on graphite used in battery anodes, citing their current dependence on China. Port operators also noted that costs for Chinese cranes under contract would rise, as there are no U.S. manufacturers for these large port cranes.