USTR-New Tariffs On Chinese Goods Delayed At Least Two Weeks

In a press release from the office of US Trade Representative Katherine Tai, the USTR confirms that the start of new tariffs on Chinese goods will be delayed by at least two weeks. A slew of US tariffs on Chinese products were set to come into effect on 1 August in the most significant escalation in bilateral trade tensions for some time.

• Chinese electric vehicles are supposed see import duties quadruple to 100%, while those on Chinese semiconductors are set rise to 50% and battery parts from 7.5% to 25%.
• The Biden administration has argued that the tariffs are required to support American jobs in the face of cheap Chinese imports. Such tariffs are one of the few issues that garner bipartisan support in the US’ divided political landscape.
• The press release states "On May 28, 2024, USTR proposed certain modifications of the actions in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. In response to the May 28 Notice, USTR received more than 1,100 comments from the public. In consultation with the Section 301 committee, USTR continues to review all comments and expects its final determination will now be issued in August 2024. USTR expects that the modifications slated for 2024 will take effect approximately two weeks after it makes the final determination public."
• With the determination now set for an unspecified time in August, and then two weeks after this until implementation, the earliest the tariffs could come in are Thursday 15 Aug.