BANGKOK– The Biden administration plans to increase tariffs on solar wafers, polysilicon and some tungsten products from China to protect U.S. clean energy companies.
The notice from the U.S. Trade Representative’s office said tariffs on Chinese-made solar wafers and polysilicon will increase to 50% and duties on certain tungsten products will increase to 25%, effective Jan. 1, following a review of the Chinese business practices.
“The tariff increases announced today will further mitigate the PRC’s harmful policies and practices,” USTR Katharine Tai said in a statement. “These actions will complement the domestic investments made under the Biden-Harris administration to advance a clean energy sector.” economy, while increasing the resilience of critical supply chains.”
Last week, Washington tightened restrictions on Chinese access to advanced semiconductor technology. Beijing responded by banning exports to the US of certain crucial minerals needed to make computer chips, such as gallium, germanium and antimony. The country has also tightened its controls on graphite exports to the US
China supplies a very large share of most of these materials, and the United States has been working to secure alternative sources in Africa and other parts of the world.
Tungsten is another strategically essential metal whose production is dominated by China. The US doesn’t produce it. It is used to make weapons and is also used in x-ray tubes and light bulbs, among other industrial applications.
After Beijing announced its ban on exports of gallium and other materials to the United States, analysts said tungsten was another likely area where China could hit back.
Trade frictions have escalated in the run-up to the inauguration of newly-elected President Donald Trump, who has promised to impose 60% tariffs on Chinese goods, among others. President Joe Biden has said Trump’s promise of broad tariffs on foreign imports would be a mistake.
His administration has maintained the tariffs Trump imposed during his first term, and in some cases increased them further, but says it is taking a more targeted approach.
The investigation that led the USTR to raise tariffs on solar panels concluded in May with a report that led to tariff increases on a range of products, including electric vehicles, syringes and needles, medical gloves and face masks, semiconductors, and steel and aluminum products. among others.