Biden targets Chinese chip suppliers with higher tariffs
The US government has announced new measures 'to counter China’s unfair trade practices' with the tariff rate on semiconductors to increase from 25% to 50% by 2025.
In an official announcement, the President said American workers and businesses 'can outcompete anyone — as long as they have fair competition'. But he stated that China is engaged in forced technology transfers and intellectual property theft, which has skewed its ability to compete.
So following an in-depth review, he is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.
The tariff rates will increase as follows:
- Semiconductors – up from 25% to 50% by 2025
- Electric vehicles – up from 25% to 100% in 2024
- Lithium-ion EV batteries – up from 7.5%% to 25% in 2024
- Lithium-ion non-EV batteries – up from 7.5% to 25% in 2026
- Battery parts – up from 7.5% to 25% in 2024
- Natural graphite and permanent magnets – up from zero to 25% in 2026
- Solar cells – up from 25% to 50% in 2024
The statement said: "Following an in-depth review by the United States Trade Representative, President Biden is taking action to protect American workers and American companies from China’s unfair trade practices. To encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products."
