The United States suddenly announced that it involved tariffs on China!

According to the website of VOA Radio, on August 31st, local time, Biden’s government again postponed the announcement of imposing high tariffs on electric cars, batteries, semiconductors and solar cells made in China, and said that it would announce the final decision in the next few days.

A spokesperson for the Office of the US Trade Representative said that the agency is "continuing to make a final decision on the proposed changes (tariffs) regarding the tariffs imposed by then President Donald Trump on China goods in 2018 and 2019".

Postpone again

In May, US President Biden announced that he would raise the tariffs on electric vehicles in China to 100%, on semiconductors and solar cells to 50%, and impose 25% tariffs on lithium-ion batteries and key minerals, steel and aluminum, port cranes and syringes. These new tariffs were originally scheduled to take effect on August 1. However, the Office of the US Trade Representative said that it needed more time to study more than 1,100 public opinions from the industry. The US government postponed the implementation of this decision on July 30. However, according to the announcement on August 31, local time, the tariff increase was further postponed.

"In response to the Section 301 investigation of China’s behaviors, policies and practices related to technology transfer, intellectual property rights and innovation, the Office of the US Trade Representative continues to make the final decision on the proposed revision actions." A spokesman for the agency said in a statement, "As the office of the US Trade Representative continues this work, we expect to announce the final decision in the next few days."

US President Joe Biden announced at the end of July that he would not stand for election. Since Vice President Kamala Harris became the Democratic presidential candidate, whether to lower tariffs will become the first major trade decision made by the current US government.

The elimination of tariffs may lead to criticism from Republicans, who believe that Harris took a more moderate stance on China’s trade during the campaign, while Trump had previously vowed to impose tariffs of up to 60% on China’s imports. But many industries and some members of Congress are worried about rising costs.

Battery manufacturers of electric vehicles, including Ford Motor Company, urged the Office of the US Trade Representative to reduce the 25% tariff on graphite used as battery anode, because they are still too dependent on China for supply. The relevant port operators said that the cost of the China crane contract they signed will increase, and there is no manufacturer of large port cranes in the United States.

At the same time, many American companies demand to reduce tariffs and expand the scope of exemption. A U.S. official said in Beijing that they expected the Biden-Harris administration to implement the clearly communicated tariff intention.

Harm of tariff on industry

In fact, industry authorities are most aware of the dangers of tariffs. Per Ansgar, chief financial officer of Polestar, a Swedish electric vehicle manufacturer, recently said that the import tariffs imposed by the European Union and the United States on Chinese-made electric vehicles would harm the interests of European companies.

The United States, the European Union and Canada recently imposed high tariffs on Chinese-made cars, prompting many automakers to speed up their plans to transfer some of their production to other countries. Per Ansgar told analysts in a conference call related to the second quarter report last Thursday that he attended a meeting with the European Commission that day to discuss tariff issues.

Ansgar does not think that the commission will protect European industries by imposing tariffs, which may harm European companies that invest in technology and create jobs in Europe. Ansgar said: "Of course, it will be better for Polestar and European industry if the tariff increase is small or even not."

The relevant person in charge of the European Automobile Parts Manufacturing Association (CLEPA) said that imposing any tariff on electric vehicles exported from China to Europe may have a negative impact on European companies. Adding tariffs may not only affect the final sales of electric vehicles, but also affect the entire supply chain, including the production and supply of auto parts. Although the European Union is more cautious than the United States in its attitude towards electric vehicles in China, even a small tariff adjustment may put pressure on the auto parts industry, especially in supply chain management and cost control.

Source: Zhejiang Trade Promotion is comprehensively organized from Sina Finance, brokerage China, and reference news.