U.S. Delays Announcement for Final Tariffs on Chinese-Made EVs
White House National Security Advisor Meets with Chinese President
- White House National Security advisor Jake Sullivan recently met with Chinese President Xi Jinping in Beijing.
- New tariffs were originally scheduled to take effect on August 1 but were delayed twice.
- The development comes shortly after Canada also announced a new 100% tariff on Chinese EVs.
Background on Tariff Increases
The U.S. has delayed an announcement to confirm its final determinations for new tariffs on electric vehicles, batteries, semiconductors, and solar cells manufactured in China. The Biden administration first announced the planned tariff increases several months ago, which include 100% duties on EVs, a 50% tariff on semiconductors and solar cells, and 25% on key lithium-ion battery minerals, steel, and aluminum. These tariff hikes were originally set to be implemented on August 1 but have been delayed multiple times.
Recent Visit to Beijing
This latest delay comes shortly after White House National Security Advisor Jake Sullivan visited Beijing and met with several senior Chinese officials, including Chinese President Xi Jinping. The visit emphasized the need to manage the U.S.-China relationship, which has faced challenges in the past.
Uncertain Future
It remains unclear if the planned tariffs will be eased. The Biden administration faces a crucial decision regarding these tariffs, with Ford urging the U.S. to ease the proposed duty on graphite used in battery anodes due to concerns about dependence on Chinese suppliers. Additionally, Canada recently announced its own 100% surtax on Chinese-made EVs, citing unfair policies and practices in the Chinese EV market.
