On December 11, the Office of the United States Trade Representative announced an increase in tariffs on key materials for clean technology imported from China. This move is seen as the Biden administration’s final effort to protect American manufacturing from the influence of China-dominated clean technology industry.
According to a press release from the Trade Representative’s office, under Section 301, the U.S. will raise tariffs on certain tungsten products, wafers, and polysilicon from China. The tariffs on solar wafers and polysilicon will be raised to 50%, while tariffs on certain tungsten products will be increased to 25%. These tariff adjustments will take effect on January 1, 2025.
Solar wafers and polysilicon are crucial in the manufacturing of solar panels, while tungsten is widely used in items such as weapons and computer chips. These new tariffs highlight Washington’s concerns over America’s overreliance on Chinese materials in the fields of energy security and technology.
Trade Representative Katherine Tai stated, “The tariff increase announced today will further weaken the harmful policies and practices of the People’s Republic of China. These measures will complement the Biden-Harris administration’s domestic investments in promoting a clean energy economy, while enhancing the resilience of key supply chains.”
The Office of the Trade Representative mentioned that the tariff increase is part of a statutory review of Section 301 investigations into China’s behavior, policies, and practices concerning technology transfer, intellectual property, and innovation. These modifications mark the conclusion of the statutory review.
In the Trade Representative’s report on the statutory review, it was found that despite China making some specific changes to unfair measures, its harmful practices of forced technology transfer—especially cyber theft and industrial espionage—continue and have even intensified in some cases.
The results of the four-year review can be accessed on the Trade Representative’s website.
Previously, the Trade Representative’s office announced tariff increases on certain Chinese products, such as imposing 100% tariffs on electric cars, syringes and needles, and medical gloves; 50% tariffs on semiconductors, solar panels, and masks; and 25% tariffs on steel and aluminum products, as well as certain critical minerals.
These new tariff policies come at a time of tension in U.S.-China trade relations. The United States and other Western countries have accused Beijing of dumping goods, while Washington has taken measures to restrict the export of technologies that could be used by the Chinese military. This week, China launched an antitrust investigation against chip giant Nvidia and recently announced controls on crucial minerals required for exporting chips and military tools to the U.S.
(This article referenced reports from the U.S. Trade Representative’s office and the Financial Times)