The United States Trade Representative (USTR) has announced final modifications to Section 301 tariffs, increasing duties on specific Chinese imports. Effective January 1, 2025, the updated tariffs will impose a 50% rate on solar wafers and polysilicon, as well as a 25% rate on certain tungsten products.

These measures aim to address the trade issues with China, strengthen domestic production, and improve the U.S. supply chain resilience.

These adjustments cover five specific subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), reflecting the conclusion of USTR’s statutory four-year review of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.

“These finalized tariff increases are designed to address the harmful policies and practices of the People’s Republic of China that continue to affect American workers and businesses,” said the United States Trade Representative Katherine Tai.

The USTR report on the statutory review claimed that China engages in harmful trade practices, including forced technology transfer, cyber theft, and industrial espionage, with some of these actions intensifying recently.

Comprehensive Adjustments to Tariffs

In addition to tungsten products, wafers, and polysilicon, the final modifications introduced new timing and tariff rates for other strategic sectors. The tariff changes include:

• 100% on electric vehicles, medical gloves, syringes, and needles.
• 50% on semiconductors, solar cells, and facemasks.
• 25% on steel, aluminum products, and certain critical minerals.

The adjustments include specific exclusions, such as enteral syringes and ship-to-shore cranes ordered before May 14, 2024 and an expanded scope for machinery exclusions covering additional tariff lines.

The USTR’s ongoing monitoring of China’s policies aims to ensure flexibility in adapting the tariffs. Further updates, including a machinery exclusions process and proposed modifications for tungsten, wafer, and polysilicon tariff lines, are expected soon.

In August of this year, the U.S. increased the volume of tariff-free solar cell imports to help domestic solar module manufacturers.

In 2022, the U.S. extended the Section 201 solar tariffs imposed on the import of crystalline silicon photovoltaic modules until 2026. The decision included exempting bifacial solar panels from the duty extension and increasing the allowable import quota for solar cells from 2.5 GW to 5 GW.

The White House announced in May this year that it would bring back bifacial solar modules under Section 201 tariffs. The previous administration’s exclusion of bifacial modules had led to a surge in imports. The government also said 7.5 GW would increase the 5 GW tariff-rate quota for imported solar cells if imports approach the current quota level to ensure domestic producers can access the necessary components.