The USTR expects its final ruling to be issued in August, and the new tariffs, which had been planned to take effect on August 1, will go into effect about two weeks after the publication of the final determination.
The United States has delayed significant tariff increases on imports from China, including electric vehicles (EVs) and batteries, that had been planned to take effect on August 1, saying it was still reviewing comments received.
The US Trade Representative’s office (USTR) on May 28 proposed changes to actions in the Section 301 investigation targeting China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
In response to the May 28 notice, USTR received more than 1,100 public comments, according to a July 30 statement.
After consulting with the Section 301 committee, USTR continues to review all comments and expects its final determination to be issued in August, according to the statement.
The USTR expects the modifications slated for 2024 to take effect about two weeks after it publishes its final determination, the statement said.
In a May 14 statement, the USTR announced that in 2024 the tax rate on Chinese EVs would rise from 25 percent to 100 percent.
The tax rate on lithium-ion batteries will increase from 7.5 percent to 25 percent, according to the statement. Tariff rates, including those on solar cells and some steel and aluminum products, will also rise.
On May 22, USTR announced that tariff increases on these Chinese products would take effect on August 1.
China had previously voiced its opposition to the US plan, with the Foreign Ministry saying at a May 14 press conference that it would take all necessary measures to safeguard its legitimate rights and interests.
It’s worth noting that the quadrupling of tariffs on Chinese EVs doesn’t appear to have a material impact on Chinese EV makers, who have been substantially blocked out by the previous 25 percent tariffs as well as the Inflation Reduction Act (IRA).
Tesla Shanghai plant received EU inspectors, which could lead to lower duty, report says
