The Office of the U.S. Trade Representative (USTR) said it is still reviewing the more than 1,100 public comments regarding its May 28 notice to modify the Section 301 tariffs on a swath of Chinese products, including a new focus on solar products.
President Biden directed U.S. Trade Representative Katherine Tai to add or increase tariffs for certain Chinese products, including:
- Electric vehicles — increased to 100% in 2024
- Solar cells (whether or not assembled into modules) — increased to 50% in 2024
- Lithium-ion non-electrical vehicle batteries — increased to 25% in 2026
- Steel and aluminum products — increased to 25% in 2024
- Semiconductors — increased to 50% in 2025
In consultation with the Section 301 committee, USTR expects its final determination will now be issued in August 2024. USTR expects that the modifications slated for 2024 will take effect approximately two weeks after it makes the final determination public.
Electric vehicles — increased to 100% in 2024
Solar cells (whether or not assembled into modules) — increased to 50% in 2024
Lithium-ion non-electrical vehicle batteries — increased to 25% in 2026
Steel and aluminum products — increased to 25% in 2024
Semiconductors — increased to 50% in 2025
These points are showing chinks in the armor of the tariff considerations. It has been published here and elsewhere, China serves the Worlds manufacturers with about 60%-80% of the supply chains for raw or refined materials. Even in the U.S. manufacturing of any company doesn’t have their own in country or trade partners developed supply chains then they will still rely heavily on China for their manufacturing supply chains once again increasing prices of goods manufactured in the U.S. and creating a severe hit to items from U.S. manufacturers. This is the ancient symbol of the serpent that is swallowing it’s own tail Ouroboros. It will be a real “hat trick” if manufacturers in the U.S. will develop non-Chinese supply chains within two years to protect their cost per unit manufactured. I’m seeing these tariffs as more uncertainty, curtailment of current alternative energy projects in queues across the U.S. and another round of job losses and inflation. The “low hanging” fruit is move the manufacturing to a trading partner country like Canada or Mexico, that’s happening right now. One can see a hit to companies with manufacturing in the U.S. now taking a hit like Longi and Trina, who will be this country’s savior, First Solar, Heliene, Myer Burger? How about in country battery manufacturers, ABF (American Battery Factory), LGES, Gotion JV, CATL JV, BYD JV? Two years to build a supply chain for GWh of solar PV panels and battery cells/packs, riiigggghhhht.