As reported by foreign news agencies, the Biden administration has confirmed that it will significantly increase tariffs on Chinese imports, aiming to protect domestic industries from the impact of excess capacity driven by the Chinese government. The tariff adjustments include a 100% tariff on electric vehicles, as well as several other tariffs targeting specific commodities. The U.S. Trade Representative (USTR) announced that these new tariffs, including a 50% tariff on solar cells and a 25% tariff on steel, aluminum, electric vehicle batteries and key minerals, will take effect on September 27th.
In addition, a key point of the tariff changes is that Chinese semiconductors will be included in the scope of taxation, and it is expected that a 50% tariff will be imposed starting from a certain future time point. Despite appeals from the automotive industry for lower tariffs due to their heavy reliance on Chinese supply, tariffs on lithium-ion batteries and related components required for electric vehicle production will increase to 25%.
