On May 14, 2024, in US time — The White House in the United States issued a statement, in which President Joe Biden instructed the US Trade Representative's Office to increase the tariff rate on Chinese solar photovoltaic products under Section 301 of the Trade Act of 1974 from 25% to 50%.
In line with this directive, US President Joe Biden announced on Tuesday his plans to impose a significant increase in tariffs on Chinese lithium-ion batteries and introduce new levies on computer chips, solar cells, and electric vehicles (EVs) as part of his strategy to protect American workers and businesses. Under Section 301, the Trade Representative has been directed to increase tariffs on $18 billion worth of imports from China.
Tariffs on EVs, steel and aluminum imports as well as solar cells will take effect this year; while those on computer chips will come into effect next year. Lithium-ion non-electrical vehicle batteries will take effect in 2026.
Specifically, the tariff rate for Chinese lithium-ion batteries (not for EVs ) will be increased from 7.5% to 25%, while electric vehicles (EVs) will face a quadrupled rate of 100%. The tariff rate on Solar cells and semiconductor will be subjected to a 50% tariff - double the current rate. In addition, certain steel and aluminum imports' rates will rise by 25%, more than triple the current level.
Here are the latest US tariffs on Chinese imports:
|
US Tariffs on an array of Chinese Imports (2024-05-14, US) |
||
| Commodity |
Original Tariff |
New Tariff |
| Lithium-ion non-electrical vehicle batteries |
7.5% |
Increase rate to 25% in 2026 |
| Lithium-ion electrical vehicle batteries |
7.5% |
Increase rate to 25% in 2024 |
| Battery parts (non-lithium-ion batteries) |
7.5% |
Increase rate to 25% in 2024 |
| Solar cells (whether or not assembled into modules) |
25.0% |
Increase rate to 50% in 2024 |
| Steel and aluminum products |
0-7.5% |
Increase rate to 25% in 2024 |
| Ship to shore cranes |
0.0% |
Increase rate to 25% in 2024 |
| Semiconductors |
25.0% |
Increase rate to 50% in 2025 |
| Electric vehicles |
25.0% |
Increase rate to 100% in 2024 |
| Permanent magnets for EV batteries |
0.0% |
Increase rate to 25% in 2026 |
| Natural graphite for EV batteries |
0.0% |
Increase rate to 25% in 2026 |
| Other critical minerals |
0.0% |
Increase rate to 25% in 2024 |
| Medical Products: rubber medical and surgical gloves |
7.5% |
Increase rate to 25% in 2026 |
| Medical Products: some respirators and face masks |
0-7.5% |
Increase rate to 25% in 2024 |
| Medical Products: Syringes and needles |
0.0% |
Increase rate to 50%in 2024 |
Section 301 Investigation regarding solar battery tariffs presents both opportunities and challenges for the development of the US's solar energy battery storage industry. While it may stimulate their domestic solar manufacturing and employment, it could also have adverse effects on the global economy and trade.
In addition to trade barriers, the Biden administration also proposed incentives - Inflation Reduction Act (IRA) for solar development in 2022. It was a positive step towards reducing greenhouse gas emissions and promoting clean energy in the country, marking an important milestone in its renewable energy development process.
The bill $369 billion includes subsidies for both demand-side and supply-side aspects of solar energy. On the demand side, there are investment tax credits (ITC) available to subsidize project initial costs and production tax credits (PTC) based on actual power generation. These credits can be increased by meeting labor requirements, U.S. manufacturing requirements, and other advanced conditions. On the supply side, there are advanced energy project credits (48C ITC) for facility construction and equipment expenses, as well as advanced manufacturing production credits (45X MPTC) linked to different product sales volumes.
Based on the information provided, tariffs on lithium ion battery for solar storage will not be implemented until 2026, allowing for a transition period. This presents an excellent opportunity to import solar lithium ion batteries with the support of the IRA solar policy. If you are a solar battery wholesaler, distributor, or retailer, it is crucial to seize this opportunity now. To purchase cost-effective UL certified solar lithium batteries, please contact YouthPOWER's sales team at sales@youth-power.net.
Post time: May-16-2024