U.S. Announces New Tariffs On A Range of Chinese Goods

Date: May 17, 2024

This week, the U.S. introduced a new series of tariff increases on Chinese imports, amounting to over $18 billion worth of goods. The announcement, made by President Biden, aims to counter China’s unfair trade practices by targeting specific sectors where the U.S. is boosting domestic production.

Tariff Increases Detailed

The new tariff rates and implementation years, as announced by The White House on May 14, are outlined in a graphic originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Below, we show the current and new tariff rates, as well as the implementation years for both, for a range of Chinese imports:

Import	Current Rate	New Rate	Implementation Year (Current Rate)	Implementation Year (New Rate)
Electric vehicles (EVs)	25%	100%	2018	2024
Semiconductors	25%	50%	2018	2025
Solar cells	25%	50%	2018	2024
Syringes and needles	0%	50%	N/A	2024
Some steel and aluminium products*†	7.5%	25%	2019	2024
Lithium-ion EV batteries	7.5%	25%	2019	2024
Lithium-ion non-EV batteries*	7.5%	25%	2019	2026
Battery parts*	7.5%	25%	2019	2024
Some personal protective equipment*†	7.5%	25%	2019	2024
Rubber medical and surgical gloves*	7.5%	25%	2019	2026
Natural graphite and permanent magnets	0%	25%	N/A	2026
Other critical minerals	0%	25%	N/A	2024
Ship-to-store cranes	0%	25%	N/A	2024

*Tariffs implemented in 2019 started at 15% and were reduced to 7.5% in January 2020

†Current rate for steel and aluminium products and personal protective equipment ranges from 0 to 7.5%.

Impact on EV and Medical Industries

The U.S. directed many of its new tariff increases at the Chinese EV industry, targeting imports such as semiconductors, lithium-ion batteries, and other battery parts. Notably, tariffs on electric vehicles from China were increased to 100%, and new tariffs on certain critical minerals, essential for manufacturing battery parts and semiconductors, were introduced.

Medical-related products were also impacted by the new tariff increases. Items like medical and surgical gloves, and certain personal protective equipment, which were previously granted exclusions from Section 301 tariffs due to COVID-19, now face higher tariffs. Syringes and needles, which were previously not subjected to any tariffs, will now have a 50% tariff.

Section 301 Tariffs Still Going Strong

Tariffs are taxes imposed by a country on imported goods, increasing their price to protect domestic industries, regulate trade, or generate revenue for the government. These new tariff actions were introduced under Section 301 of the Trade Act of 1974, a provision that allows the U.S. government to investigate and respond to unfair trade practices by foreign countries.

Section 301 tariffs on Chinese goods were first introduced by former President Donald Trump in 2018, targeting a wide range of imports. The initial goal was to pressure China into altering its trade practices, which the U.S. government deemed unfair. These practices included intellectual property theft, forced technology transfers, and various forms of market manipulation that gave Chinese companies an advantage over their American counterparts.

The implementation of these tariffs led to a significant escalation in trade tensions between the two largest economies in the world. China retaliated with its own set of tariffs on U.S. goods, affecting industries such as agriculture, automotive, and manufacturing. This tit-for-tat escalation resulted in a prolonged trade war, impacting global supply chains and causing uncertainty in international markets.

Despite multiple rounds of negotiations and temporary trade deals aimed at de-escalating the situation, many of the tariffs imposed during the Trump administration remain in place. The Biden administration has continued to use Section 301 tariffs as a tool to address ongoing concerns about China’s trade practices and to support strategic economic sectors within the U.S.

Currently, Section 301 tariffs apply to over $300 billion worth of Chinese imports, encompassing a broad range of products from electronics to textiles. These tariffs have been a significant factor in the ongoing trade policy between the U.S. and China, influencing business decisions and trade flows. The recent increases in tariffs, as announced on May 14, 2024, reflect the U.S. government’s continued commitment to using trade policy as a means of addressing economic imbalances and protecting domestic industries.

By raising tariffs on key imports such as electric vehicles, semiconductors, and medical supplies, the U.S. aims to reduce its dependency on Chinese goods and encourage domestic production. The higher tariffs are expected to make Chinese imports less competitive in the U.S. market, potentially benefiting American manufacturers and workers.

As the global trade landscape continues to evolve, the impact of Section 301 tariffs will remain a critical area of focus for policymakers, businesses, and consumers alike. The ongoing trade tensions underscore the complex and often contentious nature of international trade relations, with significant implications for the global economy.