USTR To Take Further Actions On China 301 Tariffs

And just like that, the Biden Administration has reengaged in the China Tariff War. With today's announcement of significant tariff increases in key sectors, the Administration is putting special attention on protecting the U.S.'s fledgling EV industry. While the Administration has recently been saber-rattling about Chinese-made electric vehicles, there was little indication that battery components were on the chopping block. This was especially true after the Administration took such significant steps to weed out Chinese suppliers in the recent rules that define the Inflation Reduction Act's (IRA) tax credits. In fact, some might argue that the policy behind the final IRA's rules is inconsistent with this most recent announcement on tariffs. And, if the IRA's final rules did not already hamper the U.S.'s push towards electrification, today's tariff announcement will certainly have a chilling effect on supply chains and the costs of EVs in the U.S. in the near future.