This article is written by Austin Garcia
Proposed U.S. Tariffs on China
The U.S. Trade Representative (USTR) is reviewing public comments. The comments are about proposed changes to tariffs on China. This is part of an effort to deal with China’s practices on technology transfer, intellectual property, and innovation.
The USTR proposed the changes on May 28, 2024. The original tariffs were put in place to fight China’s unfair trade. This includes forced technology transfer and stealing intellectual property. The new changes are meant to protect U.S. economic interests and make sure trade is fair. The USTR received over 1,100 comments on the proposal. These comments came from businesses, industry groups, and individuals. A committee of government experts is reviewing them carefully.
Proposed Tariff Changes
The USTR wants to increase tariffs on several products from China.
- Tariffs on lithium-ion EV batteries and other battery parts would go from 7.5% to 25%.
- Tariffs on electric vehicles would go from 25% to 100%.
- Tariffs on other critical minerals would go from 0% to 25%.
- Tariffs on face masks and respirators would go from 0-7.5% to 25%.
- Tariffs on ship-to-shore cranes would go from 0% to 25%.
- Tariffs on solar cells would go from 25% to 50%.
- Tariffs on steel and aluminum products would go from 0-7.5% to 25%.
- Tariffs on syringes and needles would go from 0% to 50%.
The USTR also proposed other things in May. It wants to create an exclusion process for certain manufacturing machinery and temporary exclusions for some solar equipment. It wants to give more money to U.S. Customs to enforce the tariffs. It wants to increase collaboration between private companies and the government to fight technology theft. It also wants to keep looking for ways to support diverse supply chains.
Business Response
A pharmaceutical company, AstraZeneca, faces trade problems because of U.S.-China tensions. To lower its risks, the company is diversifying its supply chain. It is building new factories in Ireland, China, and Maryland to keep its medicine supply stable.
The USTR Review and Timeline
The USTR is still reviewing the comments. It expects to announce its final decision in August 2024. The new tariffs should start about two weeks after that. These changes could have a big impact on U.S.-China trade. They could also affect many parts of the economy. The review is a thorough process. The USTR is looking at how well the current tariffs work. It is also considering how the new changes will affect things. The goal is to better protect U.S. intellectual property and promote fair competition. This review shows that public comments matter in trade policy. As the deadline gets closer, businesses and others are waiting for the final decision. The outcome will be very important for U.S.-China trade.
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