The Office of the US Trade Representative (USTR) has published a notice in the Federal Register proposing an increase in various Section 301 tariffs on certain Chinese-origin products. The tariff increases are proposed based on sectors that USTR has identified are dominated by China, and where the US has recently made significant investments. This follows the release of the USTR four-year review of actions taken in the Section 301 investigation. The revised tariffs on products from China will notably impact an array of commodities.
The Proposed Increased Rates
| Battery parts (non-lithium-ion batteries) | Increase rate to 25% in 2024 |
| Electric vehicles | Increase rate to 100% in 2024 |
| Facemasks | Increase rate to 25% in 2024 |
| Lithium-ion electrical vehicle batteries | Increase rate to 25% in 2024 |
| Lithium-ion non-electrical vehicle batteries | Increase rate to 25% in 2026 |
| Medical gloves | Increase rate to 25% in 2026 |
| Natural graphite | Increase rate to 25% in 2026 |
| Other critical minerals | Increase rate to 25% in 2024 |
| Permanent magnets | Increase rate to 25% in 2026 |
| Semiconductors | Increase rate to 50% in 2025 |
| Ship to shore cranes | Increase rate to 25% in 2024 |
| Solar cells (whether or not assembled into modules) | Increase rate to 50% in 2024 |
| Steel and aluminum products | Increase rate to 25% in 2024 |
| Syringes and needles | Increase rate to 50% in 2024 |
On May 14, President Biden’s administration also issued a fact sheet, giving clarity to the increases on $18 billion worth of Chinese imports. The USTR notice includes detailed HTS codes and effective dates. The notice opens public comments beginning May 29 through June 28, and introduces an exclusion process limited to machinery used in domestic manufacturing, including solar manufacturing.
USTR has published a draft notice regarding the fate of the existing exclusions, which are set to expire on May 31. The official Federal Register notice is still pending.
This development has far-reaching implications for various industries ranging from batteries to medical equipment. To be proactive, importers are encouraged to reach out to their Mohawk Global representative or our trade advisors to get assistance understanding the new tariffs. Mohawk Global can assist in reviewing import data to identify impacted HTS codes to help mitigate the impact of the new tariffs. Reach out today.