Two-week postponement affects tariffs on EVs, semiconductors, and medical products
WASHINGTON – The U.S. Trade Representative’s office (USTR) announced on Tuesday that the implementation of new tariff increases on Chinese imports, originally set to begin on August 1, will be delayed by at least two weeks.
Reason for the Delay
The USTR is still reviewing over 1,100 public comments on the proposed tariffs. A final determination is expected in August, with the tariffs taking effect roughly two weeks after that decision.
Scope of the Tariffs
The proposed measures include significant increases on imports of electric vehicles (EVs), semiconductors, lithium-ion batteries, and medical products such as masks and syringes.
President Joe Biden’s administration has decided to maintain many of the tariffs imposed during Donald Trump’s presidency while introducing steeper rates on key Chinese goods. For instance, duties on Chinese EVs are set to quadruple to over 100%, while semiconductor tariffs will double to 50%.
Economic and Political Impacts
The tariffs target $18 billion worth of Chinese goods, focusing on industries like steel, aluminum, solar cells, and critical minerals. These measures aim to protect U.S. industries from China’s state-subsidized production, which Washington argues undermines American jobs.
However, some stakeholders have voiced concerns about the financial strain caused by the tariffs. The Port Authority of New York and New Jersey estimated that the tariffs would add $4.5 million to the cost of each crane, affecting its operations.
Trade Deficit
The U.S. imported $427 billion in goods from China in 2023, compared to $148 billion in exports, highlighting a persistent trade imbalance. The tariffs are seen as part of a broader strategy to reduce this gap and bolster U.S. manufacturing.
