On September 13, 2024, the United States Trade Representative (USTR) issued a statement regarding the timelines for the China Tariff increases on $18 billion worth of imports from China.
Ambassador Katherine Tai stated, “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. These actions underscore the Biden-Harris Administration’s commitment to standing up for American workers and businesses in the face of unfair trade practices.”
Tariff increases in 2024 will apply to products entered for consumption or withdrawn from the warehouse for consumption on or after September 27, 2024.
Tariff increases in 2025 and 2026 will apply to products entered for consumption or withdrawn from the warehouse for consumption on or after January 1st of the corresponding year.
More detailed information on the revisions to China Tariffs is available in USTR’s Federal Register Notice, which can be found here.
Background
The following statement from the White House was issued on May 14, 2024:
“Following an in-depth review by the United States Trade Representative, President Biden is taking action to protect American workers and American companies from China’s unfair trade practices.
To encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.”
The following tariff increases have been proposed:
- Certain steel and aluminum products will increase from 0–7.5% to 25% this year, and battery parts will rise from 7.5% to 25%.
- Lithium-ion EV batteries will increase from 7.5% to 25% this year, while lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026.
- Certain other critical minerals will increase from zero to 25% this year.
- Solar cells will increase from 25% to 50% this year.
- Syringes and needles will go from zero to 50% this year.
- Certain personal protective equipment, including certain respirators and masks, will increase from 0–7.5% to 25% this year.
- Semiconductors will increase from 25% to 50% by 2025.
- Natural graphite and permanent magnets will increase from zero to 25% in 2026.
- Rubber medical and surgical gloves will increase from 7.5% to 25% in 2026.
USTR expects to launch the machinery exclusions process soon, as well as the comment period for proposed modifications of tariff rates on certain tungsten, wafers, and polysilicon tariff lines.
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.
