US finalizes sharp tariff hikes on Chinese EVs, other goods

WASHINGTON: The US locked in tariff hikes on billions of dollars worth of Chinese goods Friday, with a 100 per cent duty on electric vehicles and 25 per cent on EV batteries taking effect in two weeks.

The White House announced the steep tariff increases in May, targeting key sectors including EVs, semiconductors, batteries and solar cells -- drawing a fiery response from Beijing.

It also comes ahead of November’s presidential election, where both Democrats and Republicans are seeking to show a tough stance on China as competition between both countries intensifies.

“Today’s finalized tariff increases will target the harmful policies and practices of the People’s Republic of China that continue to impact American workers and businesses,” said US Trade Representative Katherine Tai in a statement.

Apart from tariff increases that take effect later this month including those on solar cells, the US Trade Representative´s office confirmed that a 50 per cent duty on semiconductors -- a sharp rise from before -- would start in 2025.

A 25 per cent tariff on lithium-ion batteries that are non-EV take place January 2026, said the USTR.

The tariff hikes on about $18 billion worth of goods were taken after a review of levies imposed under then-president Donald Trump, which impacted some $300 billion in goods from China.

The moves this year impact both products already targeted by earlier Trump tariffs as well as additional ones.

But the Biden administration’s moves go beyond tech for green energy, also impacting goods like cranes and medical products.

Tariffs on ship-to-shore cranes will rise to 25 per cent this year, said the USTR.

But the final decision allows exclusions for Chinese cranes ordered before mid-May, if they are delivered before May 2026.