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- United States -

Biden Administration Confirms 25% China Steel Tariff Hike

The Biden administration will increase the tariff rate on certain China-origin steel and aluminium products under Section 301 from the current 0-7.5% to 25% in 2024, following an in-depth review by the United States Trade Representative (USTR).

This tariff hike is part of broader actions against multiple Chinese products aimed at compelling China to eliminate unfair trade practices related to technology transfer, intellectual property, and innovation.

In addition to steel and aluminum, the tariff rates will increase as follows: semiconductors to 50% by 2025, electric vehicles to 100% in 2024 under Section 301, lithium-ion EV batteries to 25% in 2024, solar cells and modules to 50% from 2024, ship-to-shore cranes to 25% in 2024, and certain medical products to 25% in 2026.

The White House statement cited China's forced technology transfers, intellectual property theft, and non-market policies contributing to its dominance in critical inputs for U.S. technologies, infrastructure, energy and healthcare, posing unacceptable risks to American supply chains and economic security. It also highlighted China's overcapacity and export surges threatening American workers, businesses and communities.

The administration aims to strengthen cooperation with global partners to address shared concerns about China's unfair practices, rather than undermining alliances or imposing indiscriminate tariffs on all imports. The move comes amid rising Chinese steel exports, with a 30.7% year-on-year increase in the first quarter, prompting calls from the U.S. steel industry for action.

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