US hikes tariffs on Chinese steel, aluminum, EVs, chips, other goods

The new tariffs, to be carried out over 2024-2026, cover various goods, with the most substantial increase targeting Chinese EVs whose tariff rate will jump from the current 25% to 100%, or a final rate of 102.5% if adding the 2.5% basic tariff imposed by the US.

Also, tariffs on lithium-ion electrical vehicle batteries will increase from 7.5% to 25% this year, while those on lithium-ion non-electrical vehicle batteries will reach 25% by 2026 from the current 7.5%.

Tariffs on ship to shore cranes will increase from 0% to 25% this year, and tariffs on steel and aluminum products will rise from 0-7.5% to 25%.

For semiconductors, tariffs will rise from 25% to 50% by 2025. Solar panels will face a tariff increase from 25% to 50% this year, regardless of whether they are assembled as components, according to the announcement.

Medical products will also see tariff hikes, with those on syringes and needles increasing from 0% to 50% this year, and tariffs on certain personal protective equipment (PPE), including facemasks, will rise from 0-7.5% to 25%. By 2026, tariffs on medical gloves will increase from the current 7.5% to 25%.

United States Trade Representative Katherine Tai stated in a press briefing on Tuesday that the Chinese government is subsiding its industries with an aim of "cornering the world market and achieving dominance and creating dependency."

A spokesperson of the Chinese Ministry of Commerce expressed strong opposition against the tariff increases, stating that "the U.S. protectionist moves will not help protect its own industries, but will most likely make its consumers and industry companies bear the consequences, as they contradict both objective facts and the economic law."

Written by Adele Pan, panqinjie@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com

Mysteel Global's previous report on United States' launch of tariffs can be found via the links below:

https://www.mysteel.net/news/5052582-flash-biden-calls-for-higher-tariffs-on-chinese-steel-aluminum