The Biden-Harris administration this week is expected to announce final implementation plans for steep tariff increases on certain Chinese imports, and if U.S. industry gets its way, many of the planned duties would be softened.
Manufacturers from electric vehicles to electric utility equipment have asked for the higher tariff rates to be reduced, delayed or abandoned, and for potential exclusions to be greatly expanded.
President Joe Biden in May announced a quadrupling of tariffs on Chinese electric vehicles to 100%, a doubling of duties on semiconductors and solar cells to 50%, as well as new
25% tariffs on lithium-ion batteries and other strategic goods including steel to shield U.S. industry from Chinese excess production.
The White House had said initially the new tariffs would take effect on Aug. 1 but that was delayed until some time in September as the U.S. Trade Representative’s office studied more than 1,100 public comments. A final determination is due by the end of August.
Whether to ease the tariffs is the administration’s first major trade decision since Vice President Kamala Harris emerged as the Democratic Party’s presidential nominee after Biden stepped aside in late July.
The decision is politically tricky. Dialing back the duties could draw criticism from Republicans that Harris will take a softer stand on China trade in a campaign where Trump has vowed to hit Chinese imports with hefty tariffs. Proceeding with the original hikes would draw complaints about higher costs, even from some Democrats in Congress.
China has vowed retaliation against the “bullying” tariff hikes and Foreign Minister
Wang Yi said they showed that some in the U.S. may be “losing their minds.”
The U.S. decision will come in the same week that U.S. National Security Adviser Jake Sullivan will meet with Wang in a visit aimed at keeping U.S.-China tensions in check
with the November U.S. election fast approaching.
With Reuters inputs
