U.S. Industry Seeks Easing Of Steep Biden China Tariff Hikes

The Biden-Harris administration is expected to announce final implementation plans this week for steep tariff increases on certain Chinese imports.

Manufacturers, from electric vehicles (EVs) to electric utility equipment, have requested that the higher tariff rates be reduced, delayed, or abandoned, and for potential exclusions to be greatly expanded.

However, if U.S. industry has its way, many of the planned duties will be softened, David Lawder reported for Reuters.

Manufacturers, from electric vehicles (EVs) to electric utility equipment, have requested that the higher tariff rates be reduced, delayed, or abandoned, and for potential exclusions to be greatly expanded.

President Joe Biden announced in May a quadrupling of tariffs on Chinese electric vehicles to 100%, a doubling of duties on semiconductors and solar cells to 50%, and new 25% tariffs on lithium-ion batteries and other strategic goods, including steel, to protect U.S. firms from Chinese overproduction.

The White House initially stated that the new tariffs would take effect on August 1, but that was delayed until sometime in September as the U.S. Trade Representative's office studied more than 1,100 public comments.

A final determination is expected by the end of August. Whether to ease the tariffs will be the administration's first major trade decision since Vice President Kamala Harris emerged as the Democratic Party's presidential nominee after Biden stepped aside in late July.

The decision is politically tricky. Dialing back the duties could draw criticism from Republicans, who may argue that Harris is taking a softer stance on China trade in a campaign where Trump has vowed to impose hefty tariffs on Chinese imports.

Proceeding with the original hikes would likely draw complaints about higher costs, even from some Democrats in Congress, David Shepardson also reported for Reuters.