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 batteriesIncrease rate to 25% in 2026
Medical gloves           Increase rate to 25% in 2026
Natural graphiteIncrease rate to 25% in 2026
Other critical mineralsIncrease rate to 25% in 2024
Permanent magnetsIncrease 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 productsIncrease 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.

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