Biden Administration's Tariffs On China-Made EVs To Protect Domestic Automakers Pushed Back

The U.S. Trade Representative’s office said on Tuesday that it will take more time to review the several comments received from the public on a hike in import tariffs on products made in China, including EVs.

What Happened: The office had said in May that the hike in tariffs proposed by Biden on EVs would take effect from Aug.1. However, USTR said on Tuesday that its final determination will be issued in August after reviewing the over 1,100 comments received from the public.

“In consultation with the Section 301 committee, USTR continues to review all comments and expects its final determination will now be issued in August 2024.”

The new tariffs will take effect about two weeks after the final determination is made public, it added.

President Joe Biden in May directed a hike in tariffs on an array of Chinese imports including EV batteries, steel and aluminum, and solar products. The President also directed quadrupling tariffs imposed on EV imports from China to over 100%.

The USTR office subsequently invited comments from interested persons including on the effects of the proposed modification on the U.S. economy, including customers.

Why It Matters: The hike in tariffs on EVs is aimed at protecting domestic automakers against Chinese EV imports which are priced lower. However, not a lot of Chinese EVs are imported to the U.S. owing to existing high tariffs and tensions between the two countries, hinting that the move is more political.

"Because we’re not going to let China flood our market, making it impossible for American automakers — automobile — auto manufacturers to compete fairly," President Joe Biden said about the decision in May. "Folks, look, I’m determined that the future of the electric vehicles will be made in America by union workers. Period."

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