According to foreign media reports, on August 31, the U.S. government once again postponed announcing a final decision to significantly increase tariffs on Chinese-made electric vehicles, batteries, semiconductors, and solar cells, saying that it would do so in the coming days.
A spokesperson for the Office of the U.S. Trade Representative (USTR) said the agency “will continue to make a final decision on the proposed changes based on the U.S. government’s tariffs on Chinese goods in 2018 and 2019.”
In a statement, a USTR spokesperson said, “The USTR will continue to make final determinations on proposed changes to the provisions of the 301 investigation related to China’s policies and practices on technology transfer, intellectual property, and innovation, which are expected to be announced in the coming days.”
A few days ago, U.S. National Security Advisor Jake Sullivan paid a visit to China and held several days of talks with senior Chinese officials, during which both the U.S. and China emphasized the need to manage U.S.-China relations.
The U.S.’s previously announced final implementation plan for tariffs on Chinese goods was scheduled to go into effect on August 1, including 100 percent tariffs on Chinese-made electric vehicles, 50 percent tariffs on semiconductors and solar cells, and 25 percent tariffs on lithium-ion batteries and key minerals, steel and aluminum, STS cranes, and syringes.
However, on July 30, USTR postponed the effective date of these tariffs until September, saying it needed more time to study the more than 1,100 public comments submitted by the industry.USTR had previously set a new deadline of August 31, but the latest announcement pushes back that date even further.
Whether to lower tariffs on China is the first major trade decision to be made by Vice President Kamala Harris since she became the Democratic presidential nominee at the end of July, when incumbent Joe Biden withdrew from this year’s presidential election.
If Harris lowers tariffs, she could draw criticism from the GOP for taking a more moderate stance on China trade during the campaign, compared to GOP presidential nominee Donald Trump, who has vowed to impose tariffs of up to 60 percent on Chinese imports. However, many U.S. industries and some members of Congress have expressed concerns about rising costs after the tariffs are implemented.
Electric car makers and battery suppliers such as Ford Motor Co. have urged the U.S. Trade Representative to lower a proposed 25 percent tariff on graphite, a material used in battery anodes, because for now they remain too dependent on Chinese supplies. Port operators say the cost of importing cranes from China will rise under their contracts, and there are no U.S. manufacturers of such large harbor cranes.