USTR Announces New Tariff Increases For Electric Vehicles, Semiconductors, Aluminum, Steel and Other Commodities

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On May 14^th, 2024, the USTR Announced strategic adjustments to Section 301 tariffs following a four-year review. U.S. trade representative Katherine Tai initially backed the retention of the Section 301 tariffs for Chinese products. However, there has been a recent strain on U.S. commerce. Due to this, President Biden supervised Tai in either revising or introducing new tariffs. The revisions are a way to counteract the current policy changes introduced by the People’s Republic of China (PRC). China has given signals that it will soon retaliate against the tariff adjustments. The Chinese government stated that the tariff changes will, “seriously affect the atmosphere of bilateral cooperation.”

The key commodities affected by the changes include:

Battery part – Rate increase to 25% in 2024

Electric Vehicles – Rate increase to 100% in 2024

Facemasks – Rate increase to 25% in 2024

Lithium-ion Electrical Vehicle Batteries – Rate increase to 25% in 2024

Lithium-ion Non Electrical Vehicle Batteries – Rate increase to 25% in 2026

Medical Gloves – Rate increase to 25% in 2026

Natural Graphite – Rate increase to 25% in 2026

Other Critical Minerals – Rate increase to 25% in 2026

Permanent Magnets – Rate increase to 25% in 2026

Semiconductors – Rate increase to 50% in 2025

Ship to Shore Cranes – Rate increase to 25% in 2024

Solar Cells (Whether or Not Assembled Into Modules) – Rate increase to 50% in 2024

Steel and Aluminum Products – Rate increase to 25% in 2024

Syringes and Needles – Rate increase to 50% in 2024

The USTR will issue a Federal Register notice regarding the adjustments that will outline the exclusion process and give the protocol for public comments on the tariff adjustments. A1 Worldwide Logistics is closely monitoring the changes and is prepared to guide you through the current situation. We offer solutions for adapting to the tariff increase and ensure the best course of action for the shipment. Contact A1 Worldwide Logistics at 305-425-9456 to navigate the current circumstances and ship your cargo internationally.