On May 24, the Office of the United States Trade Representative (USTR) announced the results of its review of Section 301 tariffs on China, stating that it will significantly increase tariffs on a range of Chinese imports, including electric vehicles and their batteries, computer chips, and medical products, effective from August 1, 2024.
The USTR specifically noted that a 30-day public comment period will conclude on June 28, indicating the U.S. government’s intention to solicit opinions and feedback on these tariff adjustments from the public. Notably, however, the USTR also revealed plans to recommend exempting hundreds of industrial machinery products, including equipment for solar product manufacturing, imported from China from tariffs.
Details of this policy adjustment will be outlined in a separate notice, with the tariff exemptions expected to remain in place until May 31, 2025.
Recently, an Associated Press report titled “China’s Small but Well-Crafted Electric Vehicles, Dubbed ‘Seagulls,’ Pose a Major Threat to the U.S. Auto Industry” has garnered significant attention. The report highlights how American politicians and manufacturers view inexpensive Chinese electric cars as a severe threat, particularly those made by manufacturers like BYD.
However, an independent director at an automaker commented in an interview that this move by the U.S. government may be a repetition of history. In the past, the U.S. government also attempted to hinder the advances of Japanese and Korean automotive companies through policy measures, but the outcomes did not meet expectations. He argues that the U.S. should focus more on enhancing the competitiveness of its domestic auto industry rather than merely erecting barriers for competitors.
Meanwhile, China’s exports of new energy vehicles (NEVs) are witnessing rapid growth. According to data from China’s General Administration of Customs, China’s automobile exports reached 5.22 million units in 2023, topping the global rankings for the first time. Among these, NEVs served as a crucial growth driver, with an export volume of 1.77 million units, marking a year-on-year increase of 67.1%. These figures strongly attest to the competitiveness and influence of Chinese NEVs in the international market.