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ARTICLE · 17 MAY 2024

The Sky's The Limit – Yet More Section 301 Tariffs On China

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On May 14th at 5 am in DC, the White House released its decision on the new section 301 tariffs.

ChinaInternational Law

On May 14th at 5 am in DC, the White House released its decision on the new section 301 tariffs. There is a 100% tariff on Chinese EVs effective this year (which is in addition to the usual 2.5% import duty on cars).

The tariff rate on Chinese lithium-ion EV batteries will increase from 7.5% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on Chinese battery parts will increase from 7.5% to 25% in 2024.

The tariff rate on Chinese natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024. The delay of the graphite tariff to 2026 fits with the need for U.S. industry to continue using Chinese graphite for some time until alternatives are developed. That reality was already reflected in the recently published IRS rules for tracing of EV battery minerals for IRA Section 30D

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