The U.S. Trade Representative’s office announced on Tuesday that the implementation of certain steep tariffs on Chinese imports, including electric vehicles (EVs) and their batteries, computer chips, and medical products, will be delayed by at least two weeks.
The USTR had previously planned for these tariffs to take effect on August 1. However, the office is still reviewing 1,100 comments received and now expects to issue a final determination in August. The new tariffs will be enacted approximately two weeks following this final determination.
U.S. Special Tariffs on Chinese EVs Set to Take Effect in August 2024
In May, President Joe Biden decided to maintain tariffs imposed by his predecessor, Donald Trump, while increasing others. This includes a proposed quadrupling of import duties on Chinese EVs to over 100% and a doubling of semiconductor tariffs to 50%. The USTR is also considering whether to increase proposed duties on medical masks, gloves, and syringes.
The tariffs aim to address concerns over China’s state-driven production capacity, which the U.S. argues undermines American industries. The measures target $18 billion worth of current Chinese imports, including critical minerals, steel, and solar cells. However, the impact on Chinese EVs may be limited due to the relatively small volume of such imports into the U.S.
Elon Musk Opposes U.S. Tariffs on Chinese EVs, Marking Policy Shift
The Port Authority of New York and New Jersey warned that the tariffs would raise the cost of each crane by $4.5 million, straining the port’s resources.
In 2023, the U.S. imported $427 billion in goods from China while exporting $148 billion, reflecting a longstanding trade imbalance.
