The United States (USA) will begin apply the increase in the tariff from 25% to 100% for electric vehicles in China from next August 1, as part of the measures to control the import of Chinese products that the US Government launched last week, the office of the US Trade Representative announced this Wednesday. The measure was initially announced last week by the White Housewhich considers that a 100% tariff rate «will protect American manufacturers from China's unfair trade practices» and will help ensure «the future of the auto industry» with cars «made in America by American workers.» «With extensive subsidies and non-market practices that generate substantial risks of overcapacity, lChinese exports of electric vehicles grew by 70% between 2022 and 2023endangering productive investments elsewhere,» the White House explained when announcing the changes. In addition, this measure will also have effects on the semiconductors, solar panels, lithium batteries, port cranes and medical products that come from the Asian giant.
Specific, tariff rate on semiconductors will increase from 25% to 50% by 2025, while the tariff applied to certain steel and aluminum products will increase from between 0%-7.5% to 25% starting August 1. The same will happen with batteries, components and critical minerals, which will see the tariff increased from 7.5% to 25%, while for solar panels it will go from 25% to 50%. «The US Trade Representative proposes that the increases in 2024 take effect on August 1, 2024, and that increases in 2025 and 2026 take effect on January 1 of the corresponding year«, highlights the organization.