USTR delays final determination on China tariffs, announcement due in coming days

By David Lawder

WASHINGTON (Reuters) -The Biden administration on Friday again delayed an announcement of its final determinations for steep U.S. tariff hikes on Chinese-made electric vehicles, batteries, semiconductors and solar cells, saying it will make a decision public in the coming days.

A spokesman for the U.S. Trade Representative's Office said the agency "continues to develop the final determination regarding proposed modifications" to tariffs on Chinese goods imposed under then-President Donald Trump in 2018 and 2019.

The statement came shortly after White House National Security adviser Jake Sullivan returned to Washington after several days of talks with senior Chinese officials in Beijing, including a meeting on Thursday with Chinese President Xi Jinping where both sides emphasized the need to manage the U.S.-China relationship.

"USTR continues to develop the final determination regarding proposed modifications of the actions in the Section 301 investigation of the People’s Republic of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation," an agency spokesperson said in a statement.

"As USTR continues this work, we expect to make the final determination public in the coming days," the spokesperson said.

Initially, the higher duties of 100% on EVs, 50% on semiconductors and solar cells, and 25% on lithium-ion batteries and key minerals, steel and aluminum, ship-to-shore cranes and syringes were due to take effect on Aug. 1.

But the agency on July 30 delayed implementation until sometime in September, saying it needed more time to study more than 1,100 public comments from industry. It set a new deadline of Aug. 31, which was further delayed by Friday's announcement.

Whether to ease the tariffs is the administration's first major trade decision since Vice President Kamala Harris emerged as the Democratic Party's presidential nominee after President Joe Biden stepped aside in late July.

Dialing back the duties is likely to draw criticism from Republicans that Harris is taking a softer stance on China trade in a campaign where Trump has vowed to hit Chinese imports with tariffs of up to 60%. But many industries and some members of Congress have raised concerns about higher costs.

EV battery makers, including Ford Motor Co, urged USTR to ease the proposed 25% duty on graphite used in battery anodes because they are currently still too dependent on Chinese supplies. Port operators said their costs for Chinese cranes under contract would rise, and there are no U.S. producers of the giant port cranes.

(Reporting by David Lawder; Editing by Doina Chiacu and Jonathan Oatis)