US Expands Tariffs to Include Semiconductors in China Trade War

The long-awaited announcement regarding tariff hikes on Chinese imports has finally arrived after a comprehensive two-year review of trade relations with China. These new measures will have a significant impact on a wide range of sectors, with particular emphasis on electric vehicles. One of the key changes is the quadrupling of duties on EVs, which are set to increase from 25 percent to 100 percent by 2024.

While the tariff increase on semiconductors has been postponed until 2025, the overall plan targets $18 billion worth of annual Chinese imports across various strategic industries such as batteries, steel, and critical minerals. The White House has justified these actions as a response to what it perceives as "unfair trade practices" by Beijing.

In a statement, Ambassador Katherine Tai highlighted the rationale behind the decision, stating, "After thorough review of the statutory report on Section 301 tariffs, and having considered my advice, President Biden is directing me to take further action to encourage the elimination of the People’s Republic of China's unfair technology transfer-related policies and practices that continue to burden U.S. commerce and harm American workers and businesses."

PRC Foreign Ministry spokesman Lin Jian expressed concerns ahead of the announcement, criticizing the Section 301 tariffs imposed by the previous US administration for disrupting normal trade and economic exchanges between the two countries. Lin emphasized that the WTO had deemed these tariffs as violations of WTO rules and urged the US to adhere to international trade regulations.

As tensions escalate between the US and China over trade policies, the implications of these tariff hikes are significant for both nations. The US Trade Representative's data provides insights into the specific categories of Chinese imports that will be affected by the new measures. It remains to be seen how China will respond to these actions and what impact they will have on the global economic landscape.