On September 13, the US Trade Office issued a notice confirming that it will significantly expand and increase import tariffs on Chinese products, including raising tariffs on electric vehicles by 100% to strengthen the protection of strategic domestic industries in the United States.
According to a statement released by the Office of the US Trade Representative, on September 13 local time, the US Biden administration said that the United States has finalized the increase of tariffs on certain Chinese-made products. Starting September 27, tariffs on Chinese-made electric vehicles will rise to 100 percent, solar cells to 50 percent, and electric vehicle batteries, critical minerals, steel, aluminum, face masks and shore container cranes will rise to 25 percent, according to the USTR. At the same time, the United States will increase import tariffs on Chinese semiconductors by 50%, and this new tax rate will take effect in January 2025. The semiconductor category has added two new categories of polysilicon and silicon wafers used in solar panels.
Chinese Ministry of Commerce spokesman He Yongqian said on the 5th that the Office of the US Trade Representative had solicited public comments on the result of the tariff review, and most of the opinions opposed the imposition of tariffs or the application for expanding the scope of tariff exemptions, which shows that the US 301 tariffs on China are unpopular, urging the US to immediately cancel all the additional tariffs on China.
The list of goods to be taxed this time is the fourth batch of lists since the United States launched the 301 tariffs on China in 2018, further expanding the scope of aluminum products involved in the 301 tariffs imposed on China. The aluminum products involved in this time involve 33 subdivided 8-digit tariff codes, including unwrought rolled aluminum and aluminum alloys; Aluminum bar, profile and profile; Aluminum wire; Aluminum strip; Aluminum foil; Aluminum tube; Aluminum pipe attachment. At the same time, aluminum ores and concentrates are also included.
Previously, aluminum products that have been involved in the tax include aluminum scrap (7602), aluminum powder (7603), aluminum cables (7614), some aluminum structures (aluminum doors and Windows and their frames, thresholds, tax code 7610.90), household aluminum appliances and parts (7610-7616), etc. After the tax increase, almost all aluminum and aluminum alloys and processed materials are covered, and some aluminum structures in aluminum products are also involved.
In 2023, the United States remains China's largest export market for aluminum products, Chapter 76 aluminum and its products exported to the United States totaled 694,000 tons, with an export value of $3.79 billion. Among them, 237,000 tons of aluminum and aluminum, accounting for 4.2%; Aluminum products 457,000 tons, accounting for 16.1%. Considering the export of 88,000 tons of aluminum doors and Windows and their frames involved in the 301 tariff in 2023, more than 6,100 tons of aluminum pipe accessories, and all aluminum products involved in the 301 tariff, the corresponding quantity in 2023 is estimated to exceed 320,000 tons. Superimposing the double countermeasures of aluminum foil, aluminum strip and aluminum profile products already implemented in China, China's aluminum products exports to the United States will be more affected. This is also bound to bring more and a series of negative impacts on China's aluminum and aluminum processing industry.
