WASHINGTON, Aug 26 (Reuters) - The Biden-Harris
administration this week is expected to announce final
implementation plans for steep tariff increases on certain
Chinese imports, and if U.S. industry gets its way, many of the
planned duties would be softened.
Manufacturers from electric vehicles to electric utility
equipment have asked for the higher tariff rates to be reduced,
delayed or abandoned, and for potential exclusions to be greatly
expanded.
President Joe Biden in May announced a quadrupling of
tariffs on Chinese electric vehicles to 100%, a doubling of
duties on semiconductors and solar cells to 50%, as well as new
25% tariffs on lithium-ion batteries and other strategic goods
including steel to shield U.S. firms from Chinese excess
production.
The White House had said initially the new tariffs would
take effect on Aug. 1 but that was delayed until some time in
September as the U.S. Trade Representative's office studied more
than 1,100 public comments. A final determination is due by the
end of August.
Whether to ease the tariffs is the administration's first
major trade decision since Vice President Kamala Harris emerged
as the Democratic Party's presidential nominee after Biden
stepped aside in late July.
The decision is politically tricky. Dialing back the duties
could draw criticism from Republicans that Harris will take a
softer stand on China trade in a campaign where Trump has vowed
to hit Chinese imports with hefty tariffs. Proceeding with the
original hikes would draw complaints about higher costs, even
from some Democrats in Congress.
China has
vowed retaliation
against the "bullying" tariff hikes and Foreign Minister
Wang Yi said they showed that some in the U.S. may be "losing
their minds."
The U.S. decision will come in the same week that U.S.
National Security Adviser Jake Sullivan
will meet with Wang
in a visit aimed at keeping U.S.-China tensions in check
with the November U.S. election fast approaching.
CRANES AND SYRINGES
The Biden-Harris tariffs include a new 25% levy on
Chinese-made ship-to-shore cranes, a China-dominated sector with
no U.S. producers. The Port of New York and New Jersey said it
has eight cranes on order from China's state-owned ZPMC at $18
million apiece, and a 25% tariff would boost the cost of each by
$4.5 million, "causing a significant strain on the Port's
critical and limited resources."
Democratic senators Tim Kaine and Mark Warner from Virginia
and Raphael Warnock and Jon Ossoff from Georgia also raised
concerns about the impact on ports in their states, calling for
existing orders for Chinese cranes to be exempted.
Warnock and Ossoff also urged USTR to reconsider the planned
50% tariff on syringes, saying they could disrupt supplies for
those used to feed newborn infants.
Ford Motor ( F ) asked USTR to reduce proposed tariffs on
artificial graphite, a key material used in the production of
anodes for electric vehicle batteries. Ford said it still
"almost exclusively" uses Chinese secondary-particle graphite,
Autos Drive America, a group representing foreign-brand
automakers, called for tariff rates on batteries, modules,
cells, and critical minerals to be kept stable through at least
2027 to allow automakers to "fulfill investments in U.S.
production and to bolster consumer adoption" of EVs.
EXTEND STEEL DUTIES
There were some companies that urged more extensive Section
301 tariffs, including for Chinese made steel, which Biden
proposed to increase to 25% from 7.5%.
Finnish stainless steelmaker Outokumpu, which
operates a mill in Alabama, said it supported the increase and
wants it extended to all steel products melted and poured in
China and processed in other countries, such as Vietnam, to curb
tariff circumvention.
The steelmaker also said the higher tariffs should extend to
other stainless steel categories, such cutlery and refrigeration
and brewery equipment.
(Reporting by David Lawder, with additional reporting by David
Shepardson; Editing by Lincoln Feast.)