Biden-Harris Administration To Finalize China Tariff Hikes Amid Industry Pushback

The Biden-Harris administration will unveil this week final plans for significant tariff increases on various Chinese imports, a move that has sparked widespread concern across multiple U.S. industries.

Key manufacturers, ranging from electric vehicles to utility equipment, have urged the administration to soften the proposed tariffs, requesting reductions, delays, or even complete abandonment of the planned duties, according to Reuters.

In May, President Joe Biden announced plans to sharply raise tariffs on Chinese goods, including a fourfold increase on electric vehicles to 100%, a doubling of duties on semiconductors and solar cells to 50%, and new 25% tariffs on lithium-ion batteries and other strategic goods such as steel.

The administration initially planned for these tariffs to take effect on August 1 but delayed the implementation until September to review over 1,100 public comments submitted to the U.S. Trade Representative's (USTR) office. A final decision is expected by the end of August.

This marks the administration's first major trade policy move since Vice President Kamala Harris became the Democratic Party's presidential nominee following Biden's decision to step aside in late July.

However, easing the tariffs could invite criticism from Republicans, who may argue that Harris is too lenient on China, while proceeding with the full hikes might lead to backlash over increased costs, even from some within her own party.

China has responded forcefully to the proposed tariff hikes, with Foreign Minister Wang Yi condemning them as "bullying" and warning of potential retaliation.

Among the most contentious tariffs is a new 25% levy on Chinese-made ship-to-shore cranes, a sector dominated by China with no U.S. manufacturers.

The Port of New York and New Jersey, which has eight cranes on order from China's state-owned ZPMC, has raised concerns that the tariff would add $4.5 million to the cost of each crane, straining the port's resources.

Meanwhile, Senators Raphael Warnock and Jon Ossoff from Georgia have urged the USTR to reconsider a planned 50% tariff on syringes, warning that it could disrupt the supply of critical medical supplies for newborns.

Ford Motor Company has also weighed in, requesting a reduction in proposed tariffs on artificial graphite, a material crucial for electric vehicle batteries, as the automaker still relies heavily on Chinese suppliers.

Autos Drive America, representing foreign-brand automakers, has called for stability in battery-related tariffs through at least 2027 to support ongoing investments in U.S. production and promote electric vehicle adoption.

However, some companies, like Finnish stainless steelmaker Outokumpu, have supported even broader and more extensive tariffs.

Outokumpu, which operates a mill in Alabama, has advocated for higher tariffs on all steel products linked to China, including those processed in third countries like Vietnam, to prevent tariff circumvention.