The U.S. Trade Representative has announced tariff modifications under Section 301 on a range of products from China, aimed at countering China’s unfair trade practices, especially in technology and innovation. The changes are part of the ongoing review of the 2018 tariffs and are intended to strengthen U.S. supply chains and reduce reliance on China.
Key products targeted for tariff increases include electric vehicles, battery parts, facemasks, medical gloves, semiconductors, solar cells, steel, and critical minerals like natural graphite. The tariffs range from 25% to 100%, with some starting as early as 2024 and others phased in by 2026. For example, tariffs on electric vehicles and related components will rise to 100% in 2024, while lithium-ion batteries and natural graphite will see a 25% tariff by 2026.
The tariffs aim to encourage domestic production, particularly in sectors where the U.S. is making significant investments, such as clean energy and semiconductors. However, there are also provisions for certain temporary exclusions, including solar manufacturing equipment and ship-to-shore cranes, to mitigate potential economic impacts.
The full range of products affected spans 382 tariff subheadings, affecting industries from automotive to healthcare, semiconductors, and renewable energy. These measures are part of a broader strategy to protect U.S. economic interests and strengthen resilience against China’s trade practices.
Product | Description | Increased Rate | Effective Date |
Battery Parts (Non-Lithium-ion Batteries) | Parts of lead-acid storage batteries, including separators | 25% | 2024 |
Electric Vehicles | Motor vehicles with electric motor (various types) | 100% | 2024 |
Facemasks | Surgical and non-surgical N95 respirators, disposable and others | 25%-50% | 2024, 2025, 2026 |
Lithium-ion Electrical Vehicle Batteries | Lithium-ion batteries for electrically powered vehicles | 25% | 2024 |
Lithium-ion Non-Electrical Vehicle Batteries | Lithium-ion batteries for other applications | 25% | 2026 |
Medical Gloves | Medical or surgical gloves of vulcanized rubber | 50%-100% | 2025, 2026 |
Natural Graphite | Various forms of natural graphite (crystalline flake, powder) | 25% | 2026 |
Other Critical Minerals | Manganese, cobalt, aluminum ores, etc. | 25% | 2024 |
Permanent Magnets | Permanent magnets of metal | 25% | 2026 |
Semiconductors | Diodes, transistors, photosensitive devices, integrated circuits | 50% | 2025 |
Ship-to-Shore Cranes | Cranes for unloading containers from vessels | 25% | 2024 |
Solar Cells | Photovoltaic cells, assembled or unassembled | 50% | 2024 |
Steel and Aluminum Products | Various steel and aluminum products | 25% | 2024 |
For more information, please visit: https://ustr.gov/sites/default/files/Section%20301%20Modifications%20Determination%20FRN%20(Sept%2012%202024)%20(FINAL).pdf