7 things about tariffs on China’s EVs, solar cells and steel that US enforces from today

Roughly a fortnight ago, the Biden administration had locked in a series of steep tariff hikes on Chinese imports, focusing on protecting strategic US industries from China’s state-driven industrial practices.

With duties on electric vehicles (EVs), solar cells, steel, and key minerals, this decision follows years of deliberation and fine-tuning by US officials.

It has come into effect from Friday (September 27).

Here are 10 key points to know about the tariffs being enforced from today:

2. 100 per cent tariff on Chinese EVs: Starting today, a 100 per cent duty is imposed on all electric vehicles imported from China. This is aimed at shielding U.S. EV manufacturers from what the administration describes as unfair competition driven by Chinese state subsidies.

3. Tariff increases on solar cells and key minerals: A 50 per cent tariff is now applied to Chinese-made solar cells, along with critical minerals like polysilicon, essential in solar panel production. This comes alongside additional duties targeting other clean energy technologies to reduce dependency on Chinese imports.

4. Steel and aluminum tariffs: The Biden administration has maintained a 25 per cent tariff on Chinese steel and aluminum imports. The move seeks to protect the domestic metal industry, particularly from the overproduction that has flooded global markets with cheap Chinese steel.

5. Extended tariffs on EV batteries and components: Lithium-ion batteries and their components, crucial to the EV sector, now face a 25 per cent tariff. The goal is to bolster the US supply chain for EV production and reduce reliance on Chinese imports, especially as the EV market grows.

6. Tariffs reflect policy continuity from Trump era: While these tariffs were expanded under President Joe Biden, many of them build on duties imposed during Donald Trump’s presidency. Over $300 billion worth of Chinese goods remain subject to tariffs ranging from 7.5 per cent to 25 per cent, covering a wide range of products from clothing to industrial machinery.

7. Industry concerns over disruptions: US industry groups have raised concerns that these tariffs may disrupt supply chains, particularly in semiconductor-intensive industries. Companies reliant on Chinese materials, including those in EV and tech sectors, worry about rising costs and limited alternatives.

8. Stricter Tariffs on Medical Supplies Tariffs on medical supplies like face masks and surgical gloves will rise from 25 to 50 per cent, with implementation delays to allow for a shift to non-Chinese suppliers. Syringes, including those critical during the COVID-19 pandemic, face an immediate 100 per cent tariff, though infant feeding syringes have a temporary one-year exclusion.

These US measures align with actions by other economies like the European Union and Canada. They are a sign of broader concerns in the West about China’s growing dominance in high-tech and industrial sectors.

With inputs from agencies