Ramped Up U.S. Tariffs on $18 Billion of Chinese Imports Proposed to Start on Aug. 1

The U.S. plans to significantly increase tariffs on $18 billion worth of Chinese imports, including electric vehicles, computer chips, and medical products, starting August 1 [para. 1].

The draft details of these tariffs, which were announced last week, were disclosed by the U.S. Trade Representative (USTR), Katherine Tai, on Wednesday [para. 2].

The USTR also proposed temporary exclusions for 19 types of solar manufacturing equipment, which might come into effect on May 31, 2025, pending public feedback before June 28. This feedback will determine the scope of these exclusions, covering products like ship-to-shore cranes, and whether proposed duties—like the 25% duty on facemasks, medical gloves, syringes, and needles—should be higher [para. 3][para. 4].

Specifically, tariffs on Chinese-made electric vehicles (EVs) will increase sharply from 25% to 100%; on certain types of steel and aluminum from 0-7.5% to 25%; on ship-to-shore cranes from 0% to 25%; on solar cells from 25% to 50%; on lithium-ion batteries for EVs from 7.5% to 25%; on facemasks from 0-7.5% to 25%; and on syringes and needles from 0% to 50%. These tariff increases are set to take effect on August 1 [para. 5].

Katherine Tai stated that these tariffs reflect her commitment to address what she views as China’s unfair trade practices. She emphasized that the President and she would keep defending American workers, economic future, and national security [para. 6].

President Joe Biden had directed the USTR on May 14 to impose these increased tariffs on various Chinese imports, including semiconductors, batteries, solar cells, and critical minerals, with the intent of protecting U.S. workers and businesses [para. 7].

In response, China’s Ministry of Commerce expressed strong opposition, arguing that the U.S. tariffs were politically motivated and served domestic political agendas [para. 8]. For further details, contact reporter Denise Jia (huijuanjia@caixin.com) [para. 9].