White House Announces New Tariffs on Goods from China

White House Announces New Tariffs on Goods from China

The Biden Administration has announced plans to raise tariffs on clean energy goods from China. The White House said “China’s unfair trade practices concerning technology transfer, intellectual property, and innovation are threatening American businesses and workers. China is also flooding global markets with artificially low-priced exports. In response to China’s unfair trade practices and to counteract the resulting harms, today, President Biden is directing his Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on $18 billion of imports from China to protect American workers and businesses.”

Both Biden and former President Trump are aggressively moving towards a more protectionist trade policy towards China, with Trump having already announced that he would increase tariffs to 100% on EVs and other products from China. Read EGA's Five Facts to Know: The Biden Administration Moves on Chinese Electric Vehicles here.

White House announcement on new tariffs on goods from China:

• The tariff rate on electric vehicles under Section 301 will increase from 25% to 100% in 2024.
• The tariff rate on certain steel and aluminum products under Section 301 will increase from 0–7.5% to 25% in 2024.
• The tariff rate on semiconductors will increase from 25% to 50% by 2025.
• The tariff rate on lithium-ion EV batteries will increase from 7.5%% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on battery parts will increase from 7.5% to 25% in 2024.
• The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024.
• The tariff rate on solar cells (whether or not assembled into modules) will increase from 25% to 50% in 2024.
• The tariff rate on ship-to-shore cranes will increase from 0% to 25% in 2024.
• The tariff rates on syringes and needles will increase from 0% to 50% in 2024. For certain personal protective equipment (PPE), including certain respirators and face masks, the tariff rates will increase from 0–7.5% to 25% in 2024. Tariffs on rubber medical and surgical gloves will increase from 7.5% to 25% in 2026.
• The Senate will vote at 5:30PM on the motion to invoke cloture on the nomination of Courtney O’Donnell to be the U.S. Permanent Representative to the United Nations Educational, Scientific, and Cultural Organization. Cloture has also been filed on judicial nominees Sanket Bulsara (Eastern District of New York) and Seth Aframe (Court of Appeals for the First Circuit).

On Wednesday, the House will vote under a suspension of the rules on the FAA Reauthorization Act (Senate Amendment to H.R.3935), which passed the Senate on Thursday evening. Suspension votes require a two-thirds majority for passage and House leaders are confident they will have the votes, notwithstanding objections from Virginia and Maryland Members who oppose the increased slots at Reagan National Airport. FAA Reauthorization is the last “must-pass” bill for Congress before September 30th.

The House will also vote under suspension this week on the Coast Guard Authorization Act (H.R.7659) and several bills from the Energy and Commerce Committee, including:

• NTIA Reauthorization Act (H.R.4510), which would, among other provisions, elevate the head of the National Telecommunications and Information Administration from Assistant Secretary to Undersecretary at Commerce.
• Maternal and Child Health Stillbirth Prevention Act (H.R.4581), which would expand Maternal and Child Health Services Block Grants to include research to prevent stillbirths.
• Setting Consumer Standards for Lithium-Ion Batteries Act (H.R.1797), which would require the Consumer Product Safety Commission to issue a consumer product safety standard for rechargeable lithium-ion batteries used in micro-mobility devices.
• TICKET Act (H.R.3950), which would establish transparency and disclosure requirements for ticket sellers for concerts, performances, sporting events, and similar activities.
• Consumer Safety Technology Act (H.R.4814), which would require the Consumer Product Safety Commission to establish a pilot program on the use of AI in support of the agency’s mission and direct the Commerce Department and Federal Trade Commission to study and report on the use of blockchain technology and digital tokens.
• Critical Infrastructure Manufacturing Feasibility Act (H.R.5390), which would require the Commerce Department to study and report on products that are in high demand across the critical infrastructure sectors.
• Promoting Resilient Supply Chains Act (H.R.6571), which would establish a critical supply chain resiliency and crisis response program in the Commerce Department.
• No Hidden FEES Act (H.R.6543), which would prohibit unfair and deceptive advertising of prices for hotel rooms and short-term lodging.

In honor of National Police Week (May 12-18), the House plans to vote on several bills intended to highlight support for law enforcement, with the Rules Committee meeting tomorrow, at 4PM, to prepare floor consideration of:

• Detain and Deport Illegal Aliens Who Assault Cops Act (H.R.7343), which would mandate the detention of illegal aliens when charged with, arrested for, convicted of, or admit committing assault of a law enforcement officer.
• Improving Law Enforcement Officer Safety and Wellness Through Data Act (H.R.7581), which would require the Department of Justice to report to Congress about violent attacks on, and aggression against, law enforcement officers, including how traumatic incidents affect the wellness of officers and the resources and programs available to officers who suffer traumatic events.
• Police Our Border Act (H.R.8146), which would require the Attorney General to report to Congress on how the border crisis affects law enforcement at the federal, state, local, and tribal levels.
• DC CRIMES Act (H.R.7530), which would lower D.C.’s definition of “youth” from under 25 years old to under 18, require the D.C. Attorney General to establish a public website containing statistics on juvenile crime, and prohibit the D.C. Council from enacting changes to criminal liability sentencing.
• LEOSA Reform Act (H.R.354), which would allow qualified active and retired law enforcement officers to carry concealed firearms and ammunition in school zones, national parks, and property and federal facilities open to the public.
• Resolutions condemning the border crisis and burdens on law enforcement (H.Res.1210) and violence against law enforcement officers and calls to defund the police (H.Res.1213).

The Rules Committee will also prepare floor consideration of the Israel Security Assistance Support Act (H.R.___) – which would prohibit funding appropriated for the Department of Defense or Department of State from being used to withhold, halt, reverse, or cancel delivery of defense articles to Israel – as Republican leadership seeks to highlight their opposition to the Biden Administration’s decision to pause arms shipments to Israel in the wake of the disagreement over Israel’s incursion into Rafah.

Congressional Agenda

Appropriations and the President’s FY2025 Budget: Budget hearings continue in the Appropriations and authorizing panels:

• Federal Trade Commission: Chair Lina Khan appears before the House Appropriations Subcommittee on Financial Services and General Government (on Wednesday, at 10AM).
• Environmental Protection Agency: Administrator Michael Regan appears before the House Energy and Commerce Subcommittee on Environment, Manufacturing, and Critical Materials (on Wednesday, at 10AM).
• Department of Health and Human Services: Secretary Xavier Becerra appears before the House Education and the Workforce Committee (on Wednesday, at 10:15AM).
• National Telecommunications and Information Administration: Administrator Alan Davidson appears before the House Energy and Commerce Subcommittee on Communications and Technology (on Wednesday, at 10:30AM).
• Department of Commerce: Secretary Gina Raimondo appears before the Senate Appropriations Subcommittee on Commerce, Justice, and Related Agencies (on Wednesday, at 2:30PM).
• National Science Foundation: Director Sethuraman Panchanathan appears before the House Science, Space, and Technology Subcommittee on Research and Technology (on Thursday, at 10AM).
• Council on Environmental Quality: Chair Brenda Mallory appears before the House Natural Resources Committee (on Thursday, at 10AM).
• U.S. Forest Service: Chief Randy Moore, accompanied by Strategic Planning, Budget, and Accountability Director Mark Lichtenstein, will appear before the Senate Energy and Natural Resources Committee (on Thursday, at 10AM).

Oversight: Several notable oversight-related hearings are lined up this week, including:

• Financial regulators: Federal Reserve Board of Governors Vice Chairman for Supervision Michael Barr, Federal Deposit Insurance Corporation Chairman Martin Gruenberg, and Acting Comptroller of the Currency Michael Hsu appear before the House Financial Services Committee (on Wednesday, at 10AM) and the Senate Banking, Housing, and Urban Affairs Committee (on Thursday, at 10AM).
• Federal response to the Francis Scott Key Bridge collapse: U.S. Coast Guard Deputy Commandant for Operations Vice Admiral Peter Gautier, U.S. Army Corps of Engineers Deputy Commanding General for Civil and Emergency Operations Major Gen. William Graham, Federal Highway Administrator Shaileen Bhatt, and National Transportation Safety Board Chair Jennifer Homendy appear before the House Transportation and Infrastructure Committee (on Wednesday, at 10AM).
• Arms control and deterrence: Undersecretary of State for Arms Control and International Security Bonnie Jenkins appears before the Senate Foreign Relations Committee (on Wednesday, at 10AM).
• Small Business Administration: Associate Administrator for Capital Access Katie Frost appears before the House Small Business Committee (on Wednesday, at 10AM).
• National Institutes of Health: Principal Deputy Director Lawrence Tabak appears before the House Select Subcommittee on the Coronavirus Pandemic (on Thursday, at 9AM).
• State Department modernization: Deputy Secretary of State for Management and Resources Richard Verma appears before the Senate Foreign Relations Committee (on Thursday, at 10:30AM).

Privacy and Section 230: House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Ranking Member Frank Pallone (D-NJ) announced a bipartisan agreement on a discussion draft of legislation that would sunset liability protections under Section 230 of the Communications Decency Act effective December 31, 2025, if Congress is unable to reach an agreement on long-term reforms.

In an opinion piece in The Wall Street Journal announcing the development, McMorris Rodgers and Pallone wrote:

“Unfortunately, Section 230 is now poisoning the healthy online ecosystem it once fostered. Big Tech companies are exploiting the law to shield them from any responsibility or accountability as their platforms inflict immense harm on Americans, especially children. Congress’s failure to revisit this law is irresponsible and untenable. That is why we’re taking bipartisan action.”

Energy and Commerce remains on track to convene a markup next week that will consider the American Privacy Rights Act and Kids Online Safety Act (H.R.7891), as well as the AM Radio for Every Vehicle Act (H.R.3413).

Biden Administration

Today, the President will deliver remarks on his agenda to promote domestic investments and jobs.

• This evening, the President will deliver remarks at the Asian Pacific American Institute for Congressional Studies’ 30th Annual Gala.
• On Wednesday, the President will deliver remarks at the National Peace Officers’ Memorial Service at the U.S. Capitol.
• On Wednesday evening, the President and First Lady will host a dinner for Combatant Commanders at the White House.
• On Thursday, the President will meet with plaintiffs from the landmark Brown v. Board of Education case and their families at the White House.
• On Friday, the President will deliver remarks at the National Museum of African American History and Culture in Washington, D.C., and the President and Vice President will later meet with the leaders of the Divine Nine, historically Black sororities and fraternities.
• On Saturday, the President will travel to Atlanta, Georgia, where he will participate in a campaign reception.
• On Sunday, the President will deliver the commencement address at Morehouse College in Atlanta and then travel to Detroit, Michigan, where he will participate in a campaign event.