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MemoMemorandumBiden · D

Presidential Memorandum

Actions by the United States Related to the Statutory 4-Year Review of the Section 301 Investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

This memorandum directs the U.S. Trade Representative to increase Section 301 tariffs on approximately $18 billion of Chinese imports, including electric vehicles (100%), semiconductors (50%), solar cells (50%), and various battery components, critical minerals, and steel/aluminum products, with phase-in dates between 2024 and 2026. It also establishes a machinery exclusion process for domestic manufacturing equipment.

Federal Register Open PDF 89 FR 44541

Impact dates

  1. Lithium-ion non-EV batteries, natural graphite, permanent magnets, medical gloves tariff increases effective

  2. Final list published and tariffs implemented after notice/comment and consultation

  3. Machinery exclusion process established

  4. Proposed list of products and tariff increases published

  5. Semiconductors tariff increase to 50% effective

  6. Battery parts (non-lithium-ion), electric vehicles, lithium-ion EV batteries, other critical minerals, ship-to-shore cranes, solar cells, steel/aluminum products, facemasks, syringes/needles tariff increases effective

Key directives

  • Maintain existing Section 301 tariffs on two 2018 actions
  • Increase tariff rates on specified Chinese products with phased implementation 2024-2026
  • Publish proposed list of products and tariff increases
  • Conduct notice and comment period per section 307(a) of Trade Act
  • Publish final list and implement tariffs after consultation
  • Establish machinery exclusion process for chapters 84 and 85 equipment
  • Prioritize exclusions for solar manufacturing equipment
  • Publish separate notice describing exclusion procedures
  • Publish memorandum in Federal Register

Who is ordered

Timeline

Immediate

  • USTR directed to publish proposed list of products and tariff increases
  • notice and comment period to begin under section 307(a) of Trade Act

Near term (90d)

  • final list of products and tariff increases to be published after notice/comment and consultation
  • tariff increases for 2024 products to be implemented (battery parts non-lithium-ion, EVs, lithium-ion EV batteries, other critical minerals, ship-to-shore cranes, solar cells, steel/aluminum, facemasks, syringes/needles)

Long term

  • semiconductor tariffs increase to 50% in 2025
  • lithium-ion non-EV batteries, natural graphite, permanent magnets, medical gloves tariffs increase to 25% in 2026
  • machinery exclusion process to be established and operational

Risks & tensions

  • Retaliatory tariffs from China likely
  • Supply chain disruptions for U.S. manufacturers dependent on Chinese inputs
  • Higher consumer prices for EVs, solar panels, and healthcare products
  • Tension with 'friend-shoring' goals vs. immediate cost impacts
  • Exclusion process complexity may create implementation delays
  • WTO compliance challenges given unilateral tariff structure
Presidential Memorandum: Actions by the United States Related to the Statutory 4-Year Review of the Section 301 Investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation · Executive Orders