On May 14, the United States released the results of the four-year review of the additional Section 301 tariffs on China, announcing that on the basis of the original Section 301 tariffs on China, it would further increase its tariffs on electric vehicles, lithium batteries, photovoltaic cells, key minerals, semiconductors, and other imported products from China. Additional tariffs will be imposed on products such as steel and aluminum, port cranes, and personal protective equipment.

Section 301 tariffs

U.S. President Joe Biden has directed the Trade Representative to increase tariffs on $18 billion of imports from China under Section 301 of the Trade Act of 1974.

Details as follows:

• Semiconductor tariffs increased from 25% to 50% (starting in 2025)

• Tariffs on lithium batteries will rise from 7.5% to 25% (from 2024)

• Tariffs on electric vehicles will increase from 25% to 100% (from 2024)

• Tariffs on solar cells will increase from 25% to 50% (from 2024)

• Tariffs on certain steel and aluminum products increased from 0-7.5% to 25% (from 2024)

• Tariffs on natural graphite, permanent magnets and certain other critical minerals increased from zero to 25% (from 2026)

The United States believes that "China's policies in the traditional semiconductor industry have led to continuous growth in market share and rapid expansion of production capacity, which may lead to the investment of market-driven companies being squeezed out. In the next three to five years, China is expected to account for some Nearly half of the new capacity in traditional semiconductor wafer production "As a result, the Section 301 tariff on semiconductors will increase to 50%.

The United States believes that "China's policies in the traditional semiconductor industry have led to continuous growth in market share and rapid expansion of production capacity, which may lead to the investment of market-driven companies being squeezed out. In the next three to five years, China is expected to account for some Nearly half of the new capacity in traditional semiconductor wafer production "As a result, the Section 301 tariff on semiconductors will increase to 50%.

In response, the spokesperson of the Chinese Ministry of Commerce responded to the US announcement of the four-year review results of the additional Section 301 tariffs on China, saying that China firmly opposes and will make solemn representations. Out of domestic political considerations, the United States abused the Section 301 tariff review process, further increased the Section 301 tariffs imposed on some Chinese products, and politicized and instrumentalized economic and trade issues. This is a typical political manipulation. China expresses strong dissatisfaction with this. The WTO has already ruled that Section 301 tariffs violate WTO rules. Instead of correcting the situation, the United States insists on going its own way and makes mistakes again and again.

The spokesperson of the Chinese Ministry of Commerce pointed out that the US increase in Section 301 tariffs violates President Biden's commitment to "not seek to suppress China's development" and "not seek to decouple and break links with China". It is also not in line with the spirit of the consensus reached by the two heads of state. This will Seriously affect the atmosphere of bilateral cooperation. The United States should immediately correct its wrongdoing and cancel the additional tariffs imposed on China. China will take resolute measures to defend its rights and interests.

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