US imposes import tariffs on Chinese solar wafers, polysilicon by 25-50% starting 2025

The tariffs were raised after the statutory four-year review under the Section 301 investigation of the China's policies related to technology transfer and intellectual property.

The US has imposed tariffs on solar wafers, certain tungsten products and polysilicon imported from China by 25-50% starting 2025, the United States Trade Representative (USTR) said on December 11.

"The tariff increases announced today will further blunt the harmful policies and practices by the People’s Republic of China," US Trade Representative Katherine Tai said in the statement.

"These actions will complement the domestic investments made under the Biden-Harris Administration to promote a clean energy economy, while increasing the resilience of critical supply chains,” said Ambassador Katherine Tai.

The tariffs were raised after the statutory four-year review under the Section 301 investigation of the China's policies related to technology transfer and intellectual property.

"...the US Trade Representative proposed increasing tariffs to 25 percent for 3 additional subheadings under “other critical minerals” covering certain tungsten products and proposed increasing tariffs to 50 percent for 2 additional subheadings under “solar cells” covering wafers and polysilicon," as per the federal notice on the announcement.

In the report on the statutory review, the US Trade Representative found that, while China had changed some specific unfair measures, its harmful forced technology transfer practices such as cyber theft and industrial espionage have continued, and in some instances, worsened.

The report titled 'Four-Year Review of Actions Taken in the Section 301 Investigation: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (Report)' was published on May 14, 2024, and is available on the USTR website.

The US accused Beijing of pursuing overcapacity in order to affect production in other countries as it imposed the import levies on solar exports from China.

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The USTR report said that some comments supporting the hike assert that tariffs on tungsten
products are vital to the 'security and the resilience of domestic supply chains' for critical
US industries such as aerospace, automotive, defense, medical, along with oil and gas. Some supporting voices had recommend tariffs as high as 75% in order to address China’s efforts to 'dominate and undercut domestic production'.

It should be noted that China accounts for approximately 80% of global tungsten reserves. The USTR report said that continued reliance on China for tungsten products "leaves US supply chains vulnerable and puts US national security at risk."

The report added that "increasing tariffs on polysilicon and wafers will complement recent investments, encourage diversification away from Chinese sources, provide additional leverage.."

The development comes even as Treasury Secretary Janet Yellen urged the next US administration to maintain dialogue channels with China. The Economic Working Group between the two nations is next set to meet December 12 on the sidelines of a G20 deputies meeting in Johannesburg, while a Financial Working Group has a session on December 15-16 in Nanjing, China.