The U.S. Trade Representative (USTR) announced significant tariff increases on a range of Chinese imports as part of the Biden administration's response to what it describes as China's unfair trade practices. These tariffs, authorized under Section 301 of the Trade Act of 1974, are aimed at protecting American workers and businesses by imposing additional costs on imports from China.
The key aspects of the tariff plan include:
100% tariff on Chinese-made electric vehicles (EVs).
50% duty on semiconductor chips.
25% tariff on ship-to-shore cranes, steel, and aluminum products.
These tariffs are scheduled to be phased in over the next three years, with some starting in 2024, particularly affecting imports like electric vehicles, solar cells, steel, aluminum, and medical products.
The plan has faced pushback, especially regarding the tariffs on ship-to-shore cranes. U.S. port authorities, terminal operators, and industry groups have raised concerns because the U.S. does not currently manufacture these cranes, and China dominates the global market.
For example, Port Houston recently made its largest crane order in history, purchasing eight electric ship-to-shore cranes from the Chinese company Shanghai Zhenhua Heavy Industries Co. The proposed 25% tariff could add $4.5 million to the cost of each crane, significantly impacting the financials of U.S. ports.
The American Association of Port Authorities (AAPA) has also expressed concern, pointing out that several U.S. ports already have contracts in place for Chinese-made cranes, which were signed before the tariff announcement. These contracts could see an additional $131 million in costs due to the new tariffs.
As of the last update o August 1st, it was announced that further review was necessary, and the final determination is now expected in mid-August, with the tariffs becoming effective two weeks later.
Source: www.freightwaves.com
Comments