Back in May, the Biden Administration announced that it would be increasing tariffs on Chinese EV materials and other components by a significant margin amid concerns over national security risks, as well as competitive concerns and allegations of forced labor used to secure and make those items. However, a number of companies – including Ford – expressed concerns over certain aspects of that rule, prompting the Office of the U.S. Trade Representative (USTR) to delay the start date of those Chinese EV tariffs twice. Now, however, those rate hikes have been finalized.
According to Reuters, at least some of these new, higher tariffs on Chinese EV materials and other items are now set to take effect on September 27th. Those include a 100 percent duty on Chinese EVs, 50 percent on solar cells, plus 25 percent on steel, aluminum, EV batteries, and key minerals. Additionally, a 50 percent duty on semiconductors (including polysilicon units used in solar panels and silicon wafers) is set to take effect in 2025.
The USTR ultimately decided to also increase tariffs on lithium-ion batteries, minerals, and components from zero to 25 percent, with this duty taking effect for EV batteries this month, followed by the units used in laptops and cell phones on January 1, 2026. The goal of these new tariffs is to try and wean the U.S. EV industry off of its heavy Chinese influence, which stems from lower prices driven by state-driven subsidies and technology transfer policies.
It is worth noting that the USTR’s final decision addresses concerns from Ford and other companies that rely on ship-to-shore cranes, which were facing a 25 percent tariff increase as they’re currently dominated by the Chinese, while no company in the U.S. currently produces that heavy machinery. Such an increase would add millions of dollars to the cost of each crane, but USTR will allow exclusions for tariffs on port cranes that were ordered prior to May’s announcement and are delivered by May 2026.
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