In a statement from the White House, US President Joe Biden has announced that existing 0-7.5 percent import duties on Chinese steel products under the Section 301 tariffs will be increased to 25 percent this year. The decision, which was made following a review by the US Trade Representative, is designed to encourage China, the largest contributor to the global steel overcapacity issue, to eliminate its unfair trade practices, the statement indicated.
According to the statement, the US continues to face unfair competition from China’s overcapacity in steel, which is among the world’s most carbon-intensive, while China’s policies and subsidies for their domestic steel industry mean high-quality, low-emissions US products are undercut by low-priced Chinese products produced with higher emissions.
Besides the tariff increase on steel from China, the tariff rates on Chinese lithium-ion EV batteries, solar cells and electric vehicles will increase to 25 percent, 50 percent and 100 percent in 2024, respectively, while the tariff on Chinese semiconductors will increase to 50 percent by 2025.
Next week, the US Trade Representative will issue a Federal Register notice announcing procedures for interested persons to comment on the proposed modifications.
