President Biden and the United States Trade Representative (USTR) recently announced Section 301 tariff hikes on key imports to address strategic trade concerns with China. These tariffs impact a wide range of products including electric vehicles (EVs), critical minerals, and other key sectors. New tariffs are set to take effect on August 1, 2024 with additional increases scheduled through 2026.
“I am following through on my commitment to stand up to the People’s Republic of China’s unfair trade practices by issuing a formal proposal to modify the tariff actions. The President has directed me to make substantial tariff increases on targeted, strategic products, and this is an important step to carry out that vision. The President and I will continue to fight for American workers, and for our economic future and national security.”
Ambassador Katherine Tai | U.S. Trade Representative
SECTION 301 TARGETS KEY INDUSTRIES
Effective August 1, electric vans, buses, low-speed EVs, electric cars, and plug-in hybrids will incur a 100% Section 301 tariff. Additionally, a new 25% tariff will be imposed on ship-to-shore cranes, EV lithium-ion batteries, lead-acid battery parts, various disposable masks, 26 critical minerals, and numerous iron, steel, and aluminum products. Solar cells and syringes will be subject to a 50% tariff.
Permanent magnets made in China will incur a 25% tariff, and products under subheading 8541 will incur a 50% tariff from January 1, 2025. By 2026, non-EV lithium-ion batteries and three types of natural graphite will be subject to a 25% tariff.
SECTION 301 EXEMPTIONS
A number of products are excluded from the newly announced tariffs, including 77 medical products granted exclusion during the pandemic. Notably, natural graphite, both artificial and other forms, will face new tariffs from 2026.
Beginning May 28, 2024, solar manufacturing equipment imported from China will be exempt from Section 301 tariffs. This exemption, covering 19 products, will remain effective until May 31, 2025. Companies must apply for exclusions for non-solar manufacturing equipment through designated tariff lines.
USTR SEEKS PUBLIC COMMENTARY
The USTR seeks public comment with respect to the proposed modifications. Submit written comments using docket number USTR–2024–0007 at https://comments.ustr.gov. Commentary is open through June 28, 2024.
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