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The United States Trade Representative (USTR) announced plans to modify tariffs on Chinese goods in response to unfair trade practices. This follows a four-year review of the tariffs initially imposed under Section 301.

Why the Change?

The USTR concluded that while the original tariffs prompted China to make some changes, these practices still harm American businesses and workers. The modifications aim to further pressure China to eliminate these unfair policies.

What’s Changing?

  • Existing tariffs will remain. Products currently subject to tariffs will continue to face those charges.
  • Increased tariffs on specific goods. The USTR proposes raising tariffs on certain items critical to American manufacturing and national security. These include:
  • Battery parts (non-lithium ion)
  • Electric vehicles
  • Facemasks
  • Lithium-ion batteries (for both electric and non-electric vehicles)
  • Medical gloves
  • Natural graphite
  • Other critical minerals
  • Permanent magnets
  • Semiconductors
  • Ship to shore cranes
  • Solar cells
  • Steel and aluminum products
  • Syringes and needles
  • Exclusion process for specific machinery. The USTR will establish a system for companies to apply for exemptions on tariffs for machinery used in domestic manufacturing, particularly for solar equipment.

For the full USTR announcement, click here

Additionally, USTR’s announcement did not include any information on the May 31 expiration of hundreds of tariff exclusions.

Source: USTR