Powin’s Post

😅 - Will the recent tariff rate increase by the US government push Chinese companies to establish plants in the US, or will they reconsider their presence in the US market altogether? - also the future of BYD’s Mexican plant remains uncertain… (Reuters) -The Biden administration on Friday locked in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles, to boost protections for strategic industries from China's state-driven industrial practices. The U.S. Trade Representative's office said that many of the tariffs, including a 100% duty on Chinese EVs, 50% on solar cells and 25% on steel, aluminum, EV batteries and key minerals, would take effect on Sept. 27.

🌐✨ The Office of the United States Trade Representative (USTR) has announced several significant actions concerning Section 301 duties on imports from China. 🤝🌏 Key actions include: - **Maintaining Section 301 duties** on imports from China - **Increasing duties** for specific products, such as electric vehicles, batteries and battery parts, natural graphite, critical minerals, solar cells, steel, and aluminum - **Establishing a new exclusion process** for machinery used in US manufacturing, including certain solar manufacturing equipment - **Extending some existing temporary product exclusions** - **Allowing a 14-day transition period** for exclusions that were set to expire on May 31, 2024 Read more about these actions below. #InternationalTrade #GlobalTrade #TradePolicy #Section301 #SupplyChain #Tariffs #Logistics

𝐔𝐒 𝐓𝐚𝐫𝐢𝐟𝐟 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐬 𝐨𝐧 𝐂𝐡𝐢𝐧𝐞𝐬𝐞 𝐈𝐦𝐩𝐨𝐫𝐭𝐬 – 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐓𝐫𝐚𝐝𝐞 𝐚𝐧𝐝 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 On May 14, 2024, US President Joe Biden announced new increases in trade tariffs on US$18 billion worth of Chinese imports, covering key and strategic industries such as electric vehicles (EVs), solar panels, and semiconductors. The increased tariffs cover 14 different Chinese product categories and include hiking import duties on imported Chinese electric vehicles from 25 percent to 100 percent in a matter of months. The announcement followed a recommendation by the US Trade Representative (USTR) to increase tariffs after the conclusion of the statutory review of the Section 301 Tariffs, which were first imposed by the Trump Administration in 2018. The USTR launched the statutory review in May 2022 in the lead-up to the fourth anniversary of the tariffs being implemented. The directive to increase tariffs in strategic industries serves to “protect American workers and American companies from China’s unfair trade practices”, and to “encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation”, according to the White House. In addition to modifying tariffs on 14 categories of Chinese imports, the statutory review proposed 19 temporary tariff exclusions for solar manufacturing equipment, as well as a tariff exclusion process through which US companies can request exemptions for certain manufacturing equipment. (Source: The China Briefing News) #internationalcommerce #world #import #export

After a two-year review, the USITC announced a series of increases in existing tariffs against Chinese EV and EV supply chain materials/components under Section 301 of the Trade Act of 1974 (details in linked document). I struggle to see the coherence between these tariffs hikes and the final rules on the clean vehicle provisions set by the Biden administration a week ago, acknowledging the need to rely on graphite imports from China notably (see comment below). https://lnkd.in/edygPA8r Even though the US IRA has undoubtfully accelerated investments along the NAFTA supply chain, China dominance over the EV supply chain and the slowness of upstream project developments in the US (and elsewhere, i.e. permitting, fundraising, FID making) can only have inflationary impact on made-in-US EVs as it stands... #evs #batterymetals #criticalminerals #criticalmaterials

Writing in The National Interest, I argue that America faces grave challenges maintaining its competitiveness vis-a-vis China--and that the Biden administration's new tariffs on electric vehicles, batteries, some critical minerals, solar cells, and other goods won't be enough. China's lead is considerable and manufacturers in allied countries depend on China much as we do--and are also commercial competitors. America will have to build new economic alliances that complement its security relationships. https://lnkd.in/eYB7Zt6i

🌎 New developments in the current trade disputes between China, the United States, and the European Union have occurred in the past week, with the US notably imposing new tariffs on Chinese imports across several strategic sectors, in which: 👉tariffs on Chinese electric cars (EVs) will be quadrupled from 25% to 100%  👉those on semiconductors and solar cells will reach 50%  👉finally, tariffs on certain steel and aluminium products, as well as lithium-ion batteries, will reach 25%    📌 This decision, which garnered mixed reactions in the EU, notably occurred just as the European Commission decided to close its investigation into Chinese companies suspected of benefiting from subsidies in a public procurement process for the construction of a solar park in Romania.    ⌛The dynamics of international trade relations will continue to evolve in the coming months, with competition among the three blocs—the US, the EU, and China—becoming more complex by the day.    Read EERA’s full analysis here: https://lnkd.in/eHHRAdkH  

🌍 The Biden administration's recent decision to impose new tariffs on $18 billion worth of Chinese imports marks a bold step in U.S. trade policy. Aimed at protecting American industries from unfair competition, these tariffs target critical sectors such as electric vehicles, solar panels, and semiconductors. 🚗 With a staggering 100% tariff on Chinese electric vehicle imports and significant increases in other areas, the administration claims these measures are designed not to disrupt global trade but to correct specific competitive imbalances. 🤔 As professionals in the trade, manufacturing, or global market sectors, what impact do you foresee these tariffs having on business operations and global supply chain management? Could this strategy lead to a more balanced economic relationship, or might it escalate into a broader trade conflict? 📉 While the intent is to fortify domestic industries, the implications on international relations and economic dynamics are hard to ignore. China's sharp response, promising "resolute measures" in retaliation, hints at a possible intensification of global trade tensions. 🔄 Your insights could offer a broader perspective on how such policies shape not just economies but also global cooperation and competition. Let's discuss! #GlobalTrade #EconomicPolicy #Tariffs #ChinaUSRelations #Manufacturing #SupplyChain #BusinessStrategy #InternationalBusiness

Yesterday the North American Graphite Alliance, of which NOVONIX is a member, urged the U.S. Trade Representative to impose Section 301 tariffs on Chinese graphite imports used to make lithium-ion battery anode material. Domestic manufacturers like NOVONIX are growing rapidly but facing unfair trade barriers and market manipulation due to longstanding Chinese dominance and oversupply. As demand for anode material continues to grow – 300% in North America and nearly 200% globally over the next five years – Section 301 tariffs will help domestic manufacturers compete fairly with Chinese producers, strengthen U.S. energy independence, and benefit local economies.

#Major #Tariffs Announced by US President Targeting Key #Chinese Industries In a significant move to reshape international trade dynamics, the US President announced a series of tariffs yesterday on goods manufactured in China. These new tariffs are set to impact several major industries: • 25% on #steel and #aluminum • 50% on #semiconductors • 100% on electric vehicles (#EVs) • 50% on #solar panels The President stated that these tariffs aim to deter China from dominating these crucial sectors. This strategic decision underscores the #US administration’s commitment to protecting #domestic industries and maintaining a competitive edge in the global market. Implications for #Global #Trade The imposition of these tariffs is expected to have wide-ranging effects on international trade. Industries worldwide will need to navigate the new landscape, adjusting their supply chains and production strategies. This move also signals a broader effort by the US to challenge China’s growing influence in technology and manufacturing. Industry Reactions The steel and aluminum industries in the US may see a boost as import costs rise, potentially benefiting local producers. However, sectors reliant on Chinese imports, particularly in technology and renewable energy, could face increased costs and disruptions. As these tariffs take effect, businesses and policymakers will be closely monitoring the impacts on trade balances, industry performance, and international relations. This development marks a pivotal moment in the ongoing economic dialogue between the US and China, with potential ripple effects across the global economy. Reference: Reference link: https://lnkd.in/d-M56g4P

Accelerated Order Shift from U.S. #Tariff Barriers #Boosts Utilization Rates at #Taiwanese Semiconductor Foundries Beyond Expectations The recent announcement by the White House of new tariffs on Chinese imports, including a significant 50% tariff on semiconductor products manufactured in China, is set to take effect by 2025. According to #TrendForce, this policy shift is already causing a notable acceleration in supply chain adjustments, resulting in a surge of orders for Taiwanese semiconductor foundries. As a result, these foundries are experiencing increasing capacity utilization rates In the latter half of this year, several Taiwanese foundries are projected to see substantial increases in their utilization rates. Specifically, Vanguard’s capacity utilization rate is expected to climb above 75%, PSMC’s 12-inch capacity utilization rate is anticipated to reach between 85% and 90%, and UMC’s overall capacity utilization rates are projected to hit 70–75%. The global wafer foundry market has faced a downturn since the second half of 2022, primarily due to pandemic-induced high inventory levels that have taken over a year to correct. Although geopolitical tensions and supply chain disruptions initially drove customers to explore new projects with Taiwanese foundries, the overall industry downturn has slowed this trend. High inventory pressure and cost considerations have led many customers to continue their partnerships with Chinese foundries. However, as inventory adjustments for consumer products like #smartphones, #TVs, and #LCD monitors near completion, there has been a notable increase in inventory replenishment orders from the fourth quarter of 2023 to the second quarter of 2024. This trend benefits several companies, including #SMIC, #HHGrace, #HLMC, #Nexchip, #UMC, #Vanguard, and #PSMC, with key components such as #TDDI, large-size #DDI, #PC #MOSFET, and consumer #MCUs seeing renewed demand. TrendForce’s initial estimates suggested that capacity utilization rates for wafer foundries would bottom out in the first quarter of 2024, followed by a gradual recovery with sporadic inventory replenishment orders in the second quarter. They projected that 8-inch capacity utilization would rise to around 70%, and 12-inch capacity utilization would increase to 75–85% in the latter half of the year. In response to the shifting supply chain dynamics, #Vanguard plans to expand the first-phase capacity of its #newFab5 plant by the third quarter of 2024 and complete cross-plant validation for #Qualcomm’s #PMIC to meet the growing demand. Additionally, #Cypress and #Gigadevice are in discussions with #PSMC regarding #NOR Flash production plans, expected to commence from the second half of this year through 2025. Current assessments indicate that the high tariffs will likely focus on Chinese-manufactured products rather than Chinese brands and on the chips themselves. reference: https://lnkd.in/g4dF_6yj