US Enforces Major Tariff Hikes on Chinese Imports, Including 100% Duty on Electric Vehicles

On Friday, the Biden administration finalized significant increases in tariffs on Chinese imports, marking a major move to protect key domestic industries from China’s excess production capacity driven by state subsidies. The new tariffs will impact a range of products, including a 100% duty on Chinese electric vehicles (EVs), 50% on solar cells, and 25% on steel, aluminum, EV batteries, and essential minerals, set to take effect on September 27.
The US Trade Representative’s office confirmed that the 50% tariff on Chinese semiconductors will now include polysilicon and silicon wafers. The tariff increase on lithium-ion batteries, essential for EVs and other devices, will be phased in, with a 25% duty starting September 27 for EV batteries and January 1, 2026, for other batteries.
Lael Brainard, the White House’s top economic adviser, emphasized that these tariffs are intended to encourage the US EV industry to reduce reliance on Chinese supply chains and address the competitive disadvantage posed by China’s state-driven subsidies and technology transfer policies.
China has criticized the tariffs as unfair and retaliatory, asserting that its EV industry’s success stems from innovation rather than government support. The higher tariffs come as Vice President Kamala Harris and former President Donald Trump vie for votes in auto and steel-producing states, both positioning themselves as firm on China ahead of the upcoming presidential election. Trump has proposed a 60% tariff on all Chinese imports.
In response to industry concerns, the final tariff decision includes temporary relief for US port operators by excluding Chinese port cranes ordered before May 14, 2024, from the new 25% tariff. Additionally, the US will delay a 25% tariff on medical face masks and surgical gloves, and raise the tariff on Chinese syringes to 100% while granting a temporary exemption for enteral syringes used for infants.
The US Trade Representative will also review requests for tariff exclusions on certain Chinese industrial machinery and allow exclusions for solar wafer and cell manufacturing equipment but not for full solar module production equipment.