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US President Joe Biden’s administration plans to raise tariffs on solar wafers, polysilicon and some tungsten products from China to protect US clean energy businesses.
The notice from the Office of US Trade Representative (USTR) said tariffs on Chinese-made solar wafers and polysilicon would rise to 50 percent from 25 percent and duties on certain tungsten products would increase from zero to 25 percent, effective on Jan. 1, following a review of Chinese trade practices under Section 301 of the US Trade Act of 1974.
The decision followed a public comment period after the USTR said in September that it was considering such actions.
“The tariff increases announced today will further blunt the harmful policies and practices by the People’s Republic of China,” US Trade Representative Katharine Tai (戴琪) said in a statement. “These actions will complement the domestic investments made under the Biden-Harris Administration to promote a clean energy 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 critical minerals needed to make computer chips, such as gallium, germanium and antimony. It also stepped up its controls on graphite exports to the US.
China provides a very large share of most of those materials, and the US has been working to secure alternative sources in Africa and other parts of the world.
Tungsten is another strategically vital metal whose production is dominated by China. The US does not produce it, but South Korea is a potential big supplier. It is used to make armaments and is also used in X-ray tubes and light bulb filaments, among other industrial applications.
US imports of the metal from China fell to US$10.9 million last year from US$19.5 million the year before.
Trade frictions have been escalating ahead of the inauguration of US president-elect Donald Trump, who has vowed to impose 60 percent tariffs on Chinese goods, among other threats. Biden’s administration has kept in place tariffs that Trump imposed during his first term in office, but says it has a more targeted approach.
China has sharply ramped up production of cheap electric vehicles (EVs), solar panels and batteries at a time when the Biden administration has championed moves to support those industries in the US.
The US and other trading partners say China improperly subsidizes exports, giving exporters of solar panels and other products an unfair advantage in overseas markets, where its manufacturers charge lower prices thanks to government support.
China accounts for more than 80 percent of the market for solar panels at all stages of production, according to the International Energy Agency, which is more than double its domestic demand for those products. Its huge economies of scale have made solar power more affordable, but also concentrated the supply chain inside China.
The agency has urged other countries to assess their solar panel supply chains and develop strategies to address any risks.
