The Biden administration announced Friday that it has finalized and implemented significant tariff hikes on Chinese imports, first introduced in May, to better safeguard strategic domestic industries from China's excess manufacturing volume.
Many tariffs, including a 100% duty on Chinese electric vehicles, 50% on solar cells, and 25% on steel, aluminum, EV batteries, and key minerals, are set to take effect on Sept. 27, according to the U.S. Trade Representative (USTR).
The USTR determination included a 50% duty on Chinese semiconductors - polysilicon used in solar panels and silicon wafers - are set to begin next year, Reuters reported.
The USTR kept the 25% tariff on lithium-ion batteries, minerals and components. Tariffs for all other devices, such as laptops and cell phones, will take effect at the start of 2026.
China has promised to retaliate against the "bullying" tariff hikes and argued that its EV industry's success is due to innovation, not support from its government.
The higher U.S. tariffs are being imposed as Vice President Kamala Harris and former President Donald Trump campaign in auto and steel-producing states, both aiming to demonstrate a tough stance on China with the November presidential election approaching.
The USTR hiked tariffs to 50% on medical face masks and surgical gloves, up from a proposed 25%, but pushed back their start to give buyers a chance to switch to non-Chinese suppliers.
The tariff on Chinese syringes will double to 100%, but USTR will allow a temporary exclusion for enteral syringes, used to feed infants, for a year.
The USTR also said it will consider requests to exclude tariffs on five Chinese industrial machinery categories, including those for machinery for purifying or filtering liquids, industrial robots and printing machinery.
It will also exclude tariffs for Chinese solar wafer and cell manufacturing equipment, but not for equipment used to make full solar modules.
Price Action: Several Chinese companies that trade in the U.S. declined in Friday's early-morning trading.
- Alibaba Group Holding Limited (NYSE: BABA) fell 1.12% to $84.53.
- PDD Holdings Inc (NASDAQ: PDD) dropped 2.6% to $94.71.
- JD.com, Inc. (NASDAQ: JD) slipped 1.14% to $26.36.
- IShares MSCI China ETF (NYSE: MCHI) rose 0.27%.
- KraneShares CSI China Internet ETF (NYSE: KWEB) slipped 0.72%.
- IShares China Large-Cap ETF (NYSE: FXI) ticked up 0.49%.