U.S Delays Tariff Hike On Chinese Imports
The U.S. Trade Representative (USTR) announced a two-week delay in the implementation of significant tariff increases on various Chinese imports, including a 25% duty hike on ship-to-shore cranes. Originally set to take effect on August 1, the tariffs will now undergo further review, with a final determination expected in mid-August. If confirmed, the tariffs would become effective two weeks later.
In May, the USTR proposed increasing tariffs on $18 billion worth of imports from China, targeting sectors such as electric vehicles, semiconductor chips, solar cells, steel, and medical products. The proposed tariffs include a 100% duty on Chinese-made EVs, a 50% duty on semiconductor chips, and a 25% duty on ship-to-shore cranes. These measures are part of the Biden administration's response to perceived unfair trade practices by China and their impact on American industries.
Port authorities and industry groups have expressed significant concerns regarding the potential impact of the tariffs. The American Association of Port Authorities (AAPA) highlighted that the new tariffs could add $131 million to existing crane orders, which could harm port efficiency, supply chains, and the overall U.S. economy. The Port Authority of New York and New Jersey noted that the tariffs would increase the cost of each crane by $4.5 million, straining limited resources.