USA strikes again.

According to a report from Reference News citing US media, the US government on September 13th decided to significantly increase the import tariffs on Chinese products, including imposing a 100% tariff on electric cars, a 50% tariff on solar energy batteries, and a 50% increase in import tariffs on Chinese semiconductors.

The latest action by the USA has sparked complaints from many industries in the United States, claiming that price increases would disrupt the supply chain, including the supply chain of semiconductor-intensive products. Study after study shows that Americans bear almost all the costs of tariffs on Chinese products. Once importers pay the tariffs, they typically pass on some or all of the costs to consumers. Jason Oxman, President of the Information Technology Industry Council, stated, "Since its implementation, tariffs have cost US companies and consumers a cumulative $221 billion. With today's announcement, the US Trade Representative's office once again relies on blunt and ineffective tariff tools, without any support for their effectiveness."

Recently, Chinese Ministry of Commerce spokesperson He Wenbo stated that the US Section 301 tariffs are unpopular and urged the US to immediately lift all additional tariffs on China.

USA significantly raises tariffs on Chinese products.

According to a report by **** on September 13 cited by Reference News, the US government has decided to dramatically increase import tariffs on Chinese products, including a 100% hike in tariffs on electric cars to enhance protection of strategic industries in the USA.

According to a press release from the Office of the U.S. Trade Representative, some tariffs will take effect on September 27th. In addition to a 100% tariff on Chinese electric vehicles, the USA will also impose a 50% tariff on Chinese solar panels, a 25% tariff on Chinese steel, aluminum, electric vehicle batteries, and critical minerals.

At the same time, the USA will increase the import tariffs on Chinese semiconductors by 50%, and this new tariff rate will take effect in January 2025. The category of semiconductors includes polysilicon and silicon wafers used in solar panels.

Chinese Ministry of Commerce spokesperson He Yong said on September 5 that previously, the Office of the U.S. Trade Representative sought public comments on the tariff review results, and most of the comments were against the imposition of tariffs or the application for expanded tariff exemptions. This shows that the U.S.'s Section 301 tariffs on China are not popular and urges the U.S. to immediately cancel all tariffs imposed on China.

He Yong said, "China has repeatedly raised solemn representations with the U.S. on the issue of Section 301 tariffs. The WTO has already ruled that Section 301 tariffs violate WTO rules. The U.S.'s practice of increasing tariffs on China is one wrong move after another. We urge the U.S. to correct its wrong practices, actively respond to voices from all walks of life, and immediately cancel all tariffs imposed on China."

In May, the spokesperson for the Ministry of Commerce issued a statement on the U.S. releasing the results of the four-year review of Section 301 tariffs imposed on China. On May 14, the U.S. released the results of the four-year review of Section 301 tariffs and announced that it will further increase tariffs on imported electric vehicles, lithium batteries, photovoltaic batteries, key minerals, semiconductors, as well as steel and aluminum, port cranes, personal protective equipment and other products from China on top of the existing Section 301 tariffs. China resolutely opposes this and has raised solemn representations.

Out of domestic political considerations, the U.S. has abused the Section 301 tariff review process and further increased the Section 301 tariffs on some Chinese products. This politicization and instrumentalization of trade issues is a typical case of political manipulation, and China strongly opposes it. The WTO has already ruled that Section 301 tariffs violate WTO rules. Instead of correcting its actions, the U.S. persists in its wrongdoings.

The Ministry of Commerce stated that the U.S. should immediately correct its wrong practices and cancel the measures of imposing tariffs on China. China will take resolute measures to defend its own rights and interests.

The EU is also making moves.

On September 12, a spokesperson for the European Commission stated that the price commitment solutions submitted by the China Mechanical and Electrical Products Circulation Association and all electric vehicle manufacturers regarding the EU's anti-subsidy case for electric vehicles did not meet the requirements, and the EU intends to reject the related price commitment applications.

In response, the spokesperson for the Ministry of Commerce answered questions from reporters on September 13, stating that China has noticed the EU's relevant statement. The European Commission has ignored the sincerity and efforts of the Chinese industry and, without conducting in-depth communication, proposed to reject the flexible solution proposals submitted by the Chinese industry. China is deeply disappointed by this.

On August 20th and September 9th, the European Commission announced the final ruling of the EU electric vehicle subsidy case, continuing its erroneous approach by imposing high tax rates. China cannot agree with or accept this, but has always maintained the utmost sincerity and has worked hard to resolve the friction through dialogue and negotiation.

On August 24th, the Chinese industry proposed a price commitment solution within the investigation timeline of this case, fully considering the demands of the European side and demonstrating maximum flexibility. The Chinese industry stated that its price commitment proposal is fully compliant and executable, and all technical issues can be resolved through negotiations. It is understood that several EU member states have also shown great interest in the price commitment solution.

The European Commission's rejection of the related solution without a detailed assessment not only undermines the confidence of the Chinese industry to continue cooperation, but also does not meet the expectations of EU member states, nor does it meet their stated desire to resolve this case through dialogue.

Since June 22, China and Europe have agreed to initiate consultations on the EU's subsidy investigation into electric vehicles. The two sides have conducted more than ten rounds of intensive consultations, with China submitting tens of thousands of pages of facts and evidence to the European side, and also proposing flexible solutions, making tremendous efforts.

However, while the European side claims to be willing to solve the issue through dialogue, on the other hand, it quickly and hastily rejects the Chinese side's proposal without providing any specific counter-proposals, completely lacking the sincerity of reciprocal actions. If the consultations ultimately fail to reach a consensus, the responsibility lies entirely with the European side.

Currently, the key to the negotiations lies in whether the European side truly has the political will to solve the problem. China urges the European side to earnestly implement the important consensus reached by the leaders of China, France, and Europe during the trilateral meeting, which stressed the need to handle economic and trade frictions through dialogue and consultation, and to demonstrate sincerity and take into serious consideration the legitimate concerns of the Chinese business community.

China not only has the utmost sincerity to resolve differences through dialogue and consultation, but also has the strongest determination to uphold the legitimate rights and interests of Chinese enterprises. China will closely follow the European side's subsequent progress and will take all necessary measures to steadfastly defend the lawful rights and interests of Chinese companies.

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