US increases and extends clean energy import tariffs on China

The USTR ruled to maintain section 301 tariffs on goods shipped from China.

The tariffs include 25% on batteries and steel, 50% tariffs of semiconductors, and a 100% tariff rate on Chinese EV imports. The agency said that many of the tariffs will take effect on September 27, 2024. 

The Section 301 tariffs categorize semiconductors into two main groups: polysilicon for solar modules; and silicon wafers, often used in computing. 

The reiteration of tariffs reflects the Biden Administration’s “tough, targeted” approach to tariffs, described to Reuters by Lael Brainard, a top White House economic adviser. 

“Electrical manufacturers are meeting growing demand for clean energy goods by reshoring, new-shoring, near-shoring, and friend-shoring critical supply chains,” said Brainard. “NEMA [the National Electrical Manufacturers Association] members have invested more than $12 billion to expand manufacturing of clean energy and advanced technology goods in the United States across the grid, industrial, built-environment, and mobility sectors. 

Fred Fischer, managing director of global policy at NEMA said, “NEMA supports government policies that encourage greater supply chain resiliency as the electroindustry proactively diversifies its supply chains and lessens its reliance on China as a source of imports. However, these tariff hikes come at a critical time when domestic manufacturers are working to prioritize and accelerate the energy transition while balancing ongoing global supply chain challenges that hinder competitiveness. USTR’s announced tariff increases will disproportionately impact the electrical industry by increasing assessed Section 301 duties on electroindustry goods from $1.3 billion, in 2023, to $4 billion in 2026.”

Additionally, the United States International Trade Commission (ITC) made a ruling to extend measures against crystalline solar cell imports to the United States from China. The agency determined that revoking antidumping and countervailing duty (AD/CVD) orders on solar cells from China would lead to a continuation or recurrence of material injury to US businesses.  

The ruling closes a five-year “sunset” review on the tariffs and maintains them at their current rates. A report from the ITC, related to the tariff finding will be published on October 18, 2024.

Mike Carr, executive director of the Solar Energy Manufacturers for America (SEMA) coalition, said, “This is an important step in aligning US industrial policy and the goals of the IRA [Inflation Reduction Act] with US trade policy. Both an increase in tariffs on China’s solar component exports, and temporary tariff relief for certain solar equipment will boost US manufacturing and send an important signal to China. The provided and suggested tariff increases on solar components from China will, in USTR’s words: ‘defend the United States against China’s policy-driven, non-market excess capacity, which has led to extreme concentration of production in China and underpriced exports’.”

From pv magazine USA.