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ArchiveTrade Policy

US moves to raise Section 301 tariffs on Chinese EVs, steel and cranes

After a four-year review in May 2024, the U.S. trade representative said existing China tariffs would stay and proposed steep increases in strategic sectors.

By Transport News Staff · Added to the archive

In May 2024, U.S. Trade Representative Katherine Tai said President Biden had directed her to raise tariffs on a range of Chinese goods under Section 301. The announcement, made May 14, followed the statutory four-year review of the tariff actions in the Section 301 investigation of China's technology transfer and intellectual property practices.

Tai recommended that products from China already subject to Section 301 tariffs remain covered. Biden directed her to add or increase tariffs on certain products in what USTR called strategic sectors.

Proposed increases

The proposed rate changes included:

  • Electric vehicles: to 100% in 2024
  • Steel and aluminum products: to 25% in 2024
  • Ship-to-shore cranes: to 25% in 2024
  • Lithium-ion electric vehicle batteries: to 25% in 2024
  • Solar cells: to 50% in 2024
  • Semiconductors: to 50% in 2025
  • Lithium-ion batteries for other uses: to 25% in 2026
  • Natural graphite and permanent magnets: to 25% in 2026

USTR also listed increases for battery parts, facemasks, other critical minerals, medical gloves, and syringes and needles.

Review findings

USTR's report found that the tariffs had been effective in encouraging China to take some steps on technology transfer but that China had not eliminated many of the practices at issue. It said economic analyses generally found the tariffs had contributed to reducing U.S. imports from China and increasing imports from other sources, including U.S. allies and partners.

The report also recommended an exclusion process for machinery used in domestic manufacturing and more funding for U.S. Customs and Border Protection to enforce Section 301 actions. USTR said it would issue a Federal Register notice the following week setting out how to comment on the proposals.

What it meant for carriers

The proposals were modifications to be published for public comment, not final rates. The list included ship-to-shore cranes, steel and aluminum products, and electric vehicle batteries, with most of the proposed increases set for 2024.

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