Biden announces new tariffs on imports of Chinese goods, including electric vehicles (2024)

FAQs

Biden announces new tariffs on imports of Chinese goods, including electric vehicles? ›

President Biden slapped tariffs on $18 billion of imports of goods from China including electric vehicles, semiconductors and medical products to protect U.S. workers and companies in the strategic sectors and punish China for unfair trade practices.

New and Increased Tariffs on Chinese-Origin Goods

These duties, which range from 7.5% to 25% and apply to roughly $550 billion in Chinese imports, were levied to induce China to change these practices. USTR initiated its four-year review of the Section 301 tariffs in May 2022.

Tariffs on certain Chinese steel and aluminum products will climb to 25% this year. Computer chip tariffs will double to 50% by 2025. For lithium-ion EV batteries, tariffs will rise from 7.5% to 25% this year. But for non-EV batteries of the same type, the tariff increase will be implemented in 2026.

Section 301 authorizes the USTR to (1) impose duties or. other import restrictions, (2) withdraw or suspend trade. agreement concessions, or (3) enter into a binding. agreement with the foreign government to either eliminate. the conduct in question (or the burden to U.S. commerce) or.

China Customs assesses and collects tariffs. Import tariff rates are divided into six categories: general rates, most-favored-nation (MFN) rates, agreement rates, preferential rates, tariff rate quota rates, and provisional rates. As a member of the WTO, imports from the United States are assessed at the MFN rate.

To encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to- ...

An economic conflict between China and the United States has been ongoing since January 2018, when U.S. President Donald Trump began setting tariffs and other trade barriers on China with the goal of forcing it to make changes to what the U.S. says are longstanding unfair trade practices and intellectual property theft ...

Infrastructure - In China, almost every product is produced in a region where their suppliers are all nearby. e.g. electronics in Shenzhen, tiles in Foshan, furniture in Shunde, etc. Having suppliers nearby saves time and cost.

Peak rate of Basic Customs Duty (BCD) is 20%. The Goods and Services Tax (GST): Electronic goods are mostly at 18%. BCD on 217 tariff lines covered under Information Technology Agreement (ITA-1) of WTO is 0%.

No such act has been introduced in Congress, but Trump has moved to impose tariffs on solar panels, washing machines, steel, and aluminum. The enforcement of the tariffs falls primarily within the purview of the Department of Commerce and Office of the United States Trade Representative.

How do I avoid Section 301 tariffs? ›

The Developments: There are a number of options that companies can employ to avoid paying the Section 301 duties, including product exclusion requests, changing the tariff classification and country of origin of Chinese-origin products imported into the United States, and duty deferral or elimination programs.

Duty drawback is a procedure in which am importer could receive a refund of customs duties assessed on the importation of an article or materials which are exported or destroyed.

The United States is currently imposing a 25 percent tariff on approximately $250 billion of imports from China and a 7.5 percent tariff on approximately $112 billion worth of imports from China.

You'll need to pay customs duty (or import tax) on any goods you move across the US border from China, though goods from some countries are exempt due to different international trade agreements. The United States Customs and Border Protection (CBP) enforces customs rules.

Usually there would be duty costs when importing goods from China, India, Taiwan and the USA but there are some cases where Duty and VAT relief is granted. Duty and VAT relief can be granted on sample of a product if: Once imported they can only be used as sample products.

Approximately 94 percent of U.S. merchandise imports by value are industrial (non-agricultural) goods. The United States currently has a trade-weighted average import tariff rate of 2.0 percent on industrial goods. One-half of all industrial goods imports enter the United States duty free.

If you are a domestic producer, tariffs can help you by making your goods cheaper compared to international goods, thus helping your business. If you export your goods to other countries that impose tariffs, this may reduce the demand for your goods, thus hurting your business.

Under Section 301 of the Trade Act of 1974, USTR has broad authority for a range of possible responsive actions to meet the goal of eliminating or otherwise resolving these unfair practices, such as the imposition of duties or other restrictions on goods or services.

Tariff. Tariffs are taxes imposed by one country on goods or services imported from another country. Tariffs are trade barriers that raise prices and reduce available quantities of goods and services for U.S. businesses and consumers.