US to increase import tariffs on Chinese EVs, related components and permanent magnets
May 15, 2024
The US is reported to be increasing its import tariffs for a range of products from China, including those for EVs, EV components, and permanent magnets.
In the report, US Trade Representative Katherine Tai stated, “After thorough review of the statutory report on Section 301 tariffs, and having considered my advice, President Biden is directing me to take further action to encourage the elimination of the People’s Republic of China’s unfair technology transfer-related policies and practices that continue to burden U.S. commerce and harm American workers and businesses.”
Ambassador Tai has recommended that products from China currently subject to Section 301 tariffs should remain. Additionally, in light of the increased burden on US commerce, President Biden is directing Ambassador Tai to take action to add or increase tariffs for certain products.
The report details that Ambassador Tai will propose the following modifications to EV-related tariffs:
| Electric vehicles | Increase rate to 100% in 2024 |
| Battery parts (non-lithium-ion batteries) | Increase rate to 25% in 2024 |
| Lithium-ion electrical vehicle batteries | Increase rate to 25% in 2024 |
| Natural graphite | Increase rate to 25% in 2026 |
| Other critical minerals | Increase rate to 25% in 2024 |
| Permanent magnets | Increase rate to 25% in 2026 |
| Semiconductors | Increase rate to 50% in 2025 |
| Steel and aluminum products | Increase rate to 25% in 2024 |
President Biden is also directing Ambassador Tai to establish an exclusion process for machinery used in domestic manufacturing and to prioritise, in particular, exclusions for certain solar manufacturing equipment.
Read the full statement here.
