US hits China with new tariffs on solar wafers, polysilicon and tungsten products

Steep duties taking effect January 1 meant to guard against Beijing’s rising clean-energy prowess

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A JA Solar Technology Co employee in Baotou, Inner Mongolia autonomous region, checks monocrystalline silicon wafers. Photo: Xinhua

Published: 2:17am, 12 Dec 2024Updated: 12:13am, 13 Dec 2024

A day after US President Joe Biden warned that Donald Trump’s plan for higher tariffs would be a “major mistake”, his own administration has levied costly new tariffs on imports of critical materials from China.

The office of the US trade representative on Wednesday announced that import taxes for solar wafers and polysilicon, an essential component in solar panels, would double from 25 to 50 per cent, while certain tungsten products used in making electronics and semiconductors would be slapped with a new 25 per cent levy.

The new import duties will take effect on January 1, 2025, just weeks before Trump’s inauguration on January 20, and are meant to guard against China’s rising clean-energy prowess.

Katherine Tai, the US trade representative, said the tariffs “will further blunt the harmful policies and practices” adopted by China, the world’s second-largest economy.

“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,” Tai added.

In 2023, China produced 80 per cent of the world’s tungsten. None is produced in the US, which is encouraging new investment, like reopening a mine in South Korea in 2024.