Posted on 17 Sep 2024
The US has confirmed that tariffs on Chinese battery parts of EVs, non-lithium-ion batteries, and lithium-ion batteries for EVs will be enforced later this month.
When US Trade Representative (USTR) Katherine Tai unveiled the duty hikes in May, they were anticipated to take effect on 1 August. They will now be applied from 27 September, targeting China’s “harmful policies and practices… that continue to impact American workers and businesses,” Tai says.
The new date concerns a 100% increase in tariffs for EVs, as well as a 25% hike for both lithium-ion batteries for EVs and non-lithium-ion batteries, Kallanish notes.
Tariff changes applying in 2026 include a 25% increase for lithium-ion batteries not for EVs, natural graphite, and permanent magnets.
The measure comes amid a trade war between the US, which is trying to establish domestic critical mineral and EV supply chains, and China, which dominates the global market for these sectors.
The EU and Canada are also applying tariffs on Chinese-made BEVs, although Canada’s only relevant imports are Tesla models made in Shanghai.
“These tariffs are additional taxes on Americans,” says Americans for Free Trade, a coalition of companies, trade bodies and workers campaigning against the tariffs. “Maintaining the current tariffs and increasing some key categories will only lead to increased costs for companies and, in turn, higher prices for consumers. Inflation is finally on a downward trend, and tariffs counter this economic progress.”
Source:Kallanish
