The Biden administration delayed an announcement involving tariffs on China
According to US media reports, on August 31 local time, the Biden administration once again delayed the announcement of high tariffs on Chinese-made electric vehicles, batteries, semiconductors and solar cells, and said it would announce a final decision in the next few days.
A spokesman for the U.S. Trade Representative's office said the agency is "continuing to make final decisions on proposed changes" to tariffs on Chinese goods imposed by then-President Donald Trump in 2018 and 2019.
Initially, the U.S. decision to impose a 100 percent tariff on electric vehicles made in China, a 50 percent tariff on semiconductors and solar cells, and a 25 percent tariff on lithium-ion batteries and key minerals, steel and aluminum, shore cranes and syringes will take effect on August 1. But because it needed more time to study more than 1,100 public objections, the United States on July 30 delayed implementation until sometime in September.
US President Joe Biden announced in May that tariffs on Chinese electric vehicles would be raised to 100 percent, on semiconductors and solar cells to 50 percent, and on lithium-ion batteries and key minerals, steel and aluminum, port cranes and syringes to 25 percent. The new tariffs were initially set to take effect on August 1. But the U.S. Trade Representative's office said it needed more time to study more than 1,100 public comments from industry. The US government delayed the implementation of this decision on July 30, however, according to an announcement on August 31 local time, the imposition of tariffs has been further delayed.
A spokesman for the US Trade Representative's office said the agency was "continuing to develop a final decision on proposed changes" to tariffs imposed on Chinese goods by then-US President Donald Trump in 2018 and 2019.
"The Office of the United States Trade Representative continues to develop a final decision on proposed modification actions in response to the Section 301 investigation of China's conduct, policies, and practices related to technology transfer, intellectual property, and innovation." Agency spokesman said in a statement. "As USTR continues this work, we expect to announce a final decision in the coming days," the spokesperson said.
US President Joe Biden announced at the end of July that he would not run again, and Vice President Kamala Harris became the Democratic presidential candidate, and whether to reduce tariffs became the first major trade decision made by the current US administration after the key event.
The removal of tariffs is likely to draw criticism from Republicans who believe Harris has taken a softer stance on China trade in the campaign, while Trump has previously vowed to impose tariffs of up to 60 percent on Chinese imports. But many industries and some members of Congress have expressed concern about rising costs.
Electric vehicle battery makers, including Ford Motor Co., have urged the Office of the U.S. Trade Representative to reduce the 25 percent tariff on graphite used in battery anodes because they are still too dependent on Chinese supplies. Port operators say their Chinese crane contracts will cost more, and there are no U.S. producers of large port cranes.
At the same time, many U.S. companies have asked for tariff relief and expanded exemptions. A U.S. official in Beijing said they expected the Biden-Harris administration to follow through on its clearly communicated intent on tariffs.
In fact, the industry authorities know best the harm of tariffs. Per Ansgar, chief financial officer of Swedish electric car maker Polestar, recently said that import tariffs imposed by the EU and the United States on Chinese-made electric cars will hurt European companies.
The United States, the European Union and Canada recently imposed steep tariffs on Chinese-made cars, prompting many automakers to accelerate plans to shift some production to other countries. Per Ansgar told analysts on a conference call related to the second-quarter report Thursday that he attended a meeting with the European Commission that day to discuss tariffs.
Ansgar does not believe that the Commission will protect European industry by imposing tariffs, which could instead hurt European companies that invest in technology and create jobs in Europe. "Of course, it would be better for Polestar and European industry if there were little or no tariff increase," Ansgar said.
The head of the European Auto Parts Manufacturers Association (CLEPA) said that any tariffs on Chinese electric vehicles exported to Europe could have a negative impact on European companies. The tariffs could not only affect final sales of electric vehicles, but also ripple through the entire supply chain, including the production and supply of auto parts. While the EU has been more cautious than the United States in its approach to Chinese electric vehicles, even small tariff adjustments could weigh on the auto parts industry, particularly in terms of supply chain management and cost control.
A spokesman for the U.S. Trade Representative's office said the agency is "continuing to make final decisions on proposed changes" to tariffs on Chinese goods imposed by then-President Donald Trump in 2018 and 2019.
Initially, the U.S. decision to impose a 100 percent tariff on electric vehicles made in China, a 50 percent tariff on semiconductors and solar cells, and a 25 percent tariff on lithium-ion batteries and key minerals, steel and aluminum, shore cranes and syringes will take effect on August 1. But because it needed more time to study more than 1,100 public objections, the United States on July 30 delayed implementation until sometime in September.
US President Joe Biden announced in May that tariffs on Chinese electric vehicles would be raised to 100 percent, on semiconductors and solar cells to 50 percent, and on lithium-ion batteries and key minerals, steel and aluminum, port cranes and syringes to 25 percent. The new tariffs were initially set to take effect on August 1. But the U.S. Trade Representative's office said it needed more time to study more than 1,100 public comments from industry. The US government delayed the implementation of this decision on July 30, however, according to an announcement on August 31 local time, the imposition of tariffs has been further delayed.
A spokesman for the US Trade Representative's office said the agency was "continuing to develop a final decision on proposed changes" to tariffs imposed on Chinese goods by then-US President Donald Trump in 2018 and 2019.
"The Office of the United States Trade Representative continues to develop a final decision on proposed modification actions in response to the Section 301 investigation of China's conduct, policies, and practices related to technology transfer, intellectual property, and innovation." Agency spokesman said in a statement. "As USTR continues this work, we expect to announce a final decision in the coming days," the spokesperson said.
US President Joe Biden announced at the end of July that he would not run again, and Vice President Kamala Harris became the Democratic presidential candidate, and whether to reduce tariffs became the first major trade decision made by the current US administration after the key event.
The removal of tariffs is likely to draw criticism from Republicans who believe Harris has taken a softer stance on China trade in the campaign, while Trump has previously vowed to impose tariffs of up to 60 percent on Chinese imports. But many industries and some members of Congress have expressed concern about rising costs.
Electric vehicle battery makers, including Ford Motor Co., have urged the Office of the U.S. Trade Representative to reduce the 25 percent tariff on graphite used in battery anodes because they are still too dependent on Chinese supplies. Port operators say their Chinese crane contracts will cost more, and there are no U.S. producers of large port cranes.
At the same time, many U.S. companies have asked for tariff relief and expanded exemptions. A U.S. official in Beijing said they expected the Biden-Harris administration to follow through on its clearly communicated intent on tariffs.
In fact, the industry authorities know best the harm of tariffs. Per Ansgar, chief financial officer of Swedish electric car maker Polestar, recently said that import tariffs imposed by the EU and the United States on Chinese-made electric cars will hurt European companies.
The United States, the European Union and Canada recently imposed steep tariffs on Chinese-made cars, prompting many automakers to accelerate plans to shift some production to other countries. Per Ansgar told analysts on a conference call related to the second-quarter report Thursday that he attended a meeting with the European Commission that day to discuss tariffs.
Ansgar does not believe that the Commission will protect European industry by imposing tariffs, which could instead hurt European companies that invest in technology and create jobs in Europe. "Of course, it would be better for Polestar and European industry if there were little or no tariff increase," Ansgar said.
The head of the European Auto Parts Manufacturers Association (CLEPA) said that any tariffs on Chinese electric vehicles exported to Europe could have a negative impact on European companies. The tariffs could not only affect final sales of electric vehicles, but also ripple through the entire supply chain, including the production and supply of auto parts. While the EU has been more cautious than the United States in its approach to Chinese electric vehicles, even small tariff adjustments could weigh on the auto parts industry, particularly in terms of supply chain management and cost control.
