Biden Administration Raises Section 301 Tariffs On Chinese Steel And Aluminum Products
President Joe Biden announced new tariff rates on approximately $18 billion in Chinese imports, including steel, aluminum, electric vehicles (EVs), batteries, semiconductors, and medical products, last week. The tariffs fall under Section 301 of the Trade Act of 1974, and are separate from the Section 232 tariffs also in place on imports of steel and aluminum into the United States from some countries, including China.
Specifically, the White House raised rates on:
- Certain steel and aluminum products from 7.5 percent to 25 percent in 2024, which are on top of existing Section 232 tariffs;
- Semiconductors from 25 percent to 50 percent by 2025;
- EVs from 25 percent to 100 percent in 2024;
- Solar cells from 25 percent to 50 percent in 2024;
- Lithium batteries for EVs and critical minerals from 7.5 percent to 25 percent in 2024; and
- Ship-to-shore cranes from zero percent to 25 percent in 2024.
Regarding industrial metals, the White House’s fact sheet said, “American workers continue to face unfair competition from China’s non-market overcapacity in steel and aluminum, which are among the world’s most carbon intensive. China’s policies and subsidies for their domestic steel and aluminum industries mean high-quality, low-emissions U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions. Today’s actions will shield the U.S. steel and aluminum industries from China’s unfair trade practices.”
Read more about the U.S. government’s decision here, here, and here.
In the wake of the United States’ announcement, Canadian Minister of Innovation, Science, and Industry François-Philippe Champagne did not rule out the possibility that the Canadian government would impose similar tariffs on Chinese products. “It’s fair to say that everything is on the table to protect our industry and our workers,” he said, noting his government is “working in sync with the United States of America.” Read more here.