US delays start of new China tariffs by at least 2 weeks
Office of the US Trade Representative announced late Tuesday a delay in implementing new tariffs on a range of Chinese imports, including electric vehicles, computer chips, and medical products. The tariffs, which were set to take effect on August 1st, will now be postponed by at least two weeks as the U.S. Trade Representative’s office reviews public comments on the proposed measures.
“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.”
In May, US President Joe Biden in May announced a quadrupling of import duties on Chinese EVs to over 100 per cent and doubling semiconductor duties to 50 per cent.
The decision comes as the Biden administration seeks to balance economic interests with national security concerns. By imposing higher tariffs on Chinese goods, the US aims to protect domestic industries and create jobs. However, the move has also drawn criticism for potentially increasing consumer costs and disrupting global supply chains.
The delayed implementation will provide additional time for stakeholders to weigh in on the potential impacts of the tariffs. Key industries, including automotive, technology, and healthcare, have expressed concerns about the proposed measures, arguing that they could harm American businesses and consumers.
The White House has justified the tariffs as necessary to counter China’s unfair trade practices and protect critical industries. However, with the global economy facing uncertainties, the administration’s decision to delay the implementation of these tariffs suggests a willingness to reassess the policy in light of evolving circumstances.
Attribution: Reuters & Office of the US Trade Representative
