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Implemented at the end of September! U.S. imposes 50% tariffs on Chinese solar cells

published: 2024-09-18 11:05

The Office of the U.S. Trade Representative said that effective Sept. 27, the tariff rate on solar cells will increase to 50 percent.

On September 13, local time, the Office of the U.S. Trade Representative (USTR) announced final modifications concerning the statutory review of the tariff actions in the Section 301 investigation of the People’s Republic of China’s (PRC) Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.

The report states that the proposed changes announced in May 2024 were largely adopted, with several updates after reviewing more than 1,100 public comments to strengthen actions to protect U.S. businesses and workers from China's unfair trade practices.

The statement announced that, effective September 27, tariff rates on Chinese-made electric vehicles will be increased to 100%, solar cells will be increased to 50%, electric vehicle batteries, critical minerals, steel, aluminum, masks, and shoreside container cranes will be increased to 25%, and tariff increases on other products, including semiconductor chips, will take effect over the next two years to strengthen the protections for strategic U.S. domestic industries.

In addition, import tariffs on semiconductors from China will be increased by 50 percent, with the new rates taking effect in January 2025. The semiconductors category includes polysilicon and silicon wafers used in solar panels.

Jennifer Hillman of the Council on Foreign Relations is quoted in the report as saying that by perfecting Western technology, China will develop domestic Chinese companies into industry giants, and then unleash their products around the world - at which point foreign companies will no longer be able to compete. China now produces 70 percent of the world's electric cars; more than 80 percent of the world's battery manufacturing capacity; controls 50-180nm semiconductor manufacturing capacity, roughly twice that of the second largest producer; and 95 percent of the world's solar product manufacturing capacity.

The 187-page report says that China accounts for an overwhelming share of global solar product production and that the United States is the world's second largest market for solar products. U.S. solar wafer, cell and module production is expected to increase in the coming years due to U.S. investment and other incentives. An increase in Section 301 tariffs on solar products would help support U.S. domestic manufacturing in this strategic area, reduce reliance on China, and provide additional leverage for China to eliminate investigated technology transfer-related acts, policies, and practices.  

In the face of this substantial increase in tariffs on Chinese products by the United States, on September 5, China's Ministry of Commerce held a press conference. A reporter asked, recently the Office of the U.S. Trade Representative (USTR) again delayed the announcement of the decision to impose 301 tariffs on Chinese products. What is China's response to this? Does China and the United States maintain communication on the issue of tariffs?

In response, Ministry of Commerce spokesman He Yongqian said that he had noticed the relevant announcement. China has repeatedly made solemn representations to the United States on the 301 tariff issue. The WTO has long ruled that the 301 tariffs violate WTO rules, and that the U.S. practice of raising tariffs on China is adding insult to injury. Previously, the Office of the U.S. Trade Representative (USTR) solicited public comments on the results of the tariff review, and the majority of the comments were against the imposition of tariffs or applying for an expansion of the scope of tariff exemptions, which shows that the U.S. 301 tariffs against China are unpopular. He Yongqian urged the U.S. side to correct its wrong practices, actively respond to the voices of all sectors, and immediately cancel all tariffs imposed on China.

Source: https://mp.weixin.qq.com/s/XIPJ29mMsEGj4qaLMVGxWg

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