Posted on 03 Sep 2024
The US has once again delayed the implementation of tariffs on certain products imported from China, such as EVs and some critical minerals.
First unveiled in May, the hikes were expected to be applied from 1 August. The US Trade Representative (USTR) said in July it was going to issue the final determination later last month.
It announced on Friday it would “make it public in the coming days,” thereby delaying the final determination to September, Kallanish notes.
The update came shortly after Jake Sullivan, a White House National Security adviser, returned from a trip to Beijing where he met Chinese President Xi Jinping to discuss “how we can responsibly manage the difficult issues and the differences that we have in this relationship.”
The duty increases under Section 301 of the Trade Act of 1974 received more than 1,100 public comments, which the USTR is reviewing.
The new package of tariff hikes included a rise from 7.5% to 25% for rates on lithium-ion EV batteries and battery parts to be applied from 2024. It also includes a 100% import duty on China-made all-electric vehicles, a move that has been replicated by Canada.
Other imports that are affected by higher tariffs are lithium-ion non-EV batteries, natural graphite, and permanent magnets, although their levies will rise in 2026.
Source:Kallanish
