U.S. To Impose 25% Tariffs On Chinese-manufactured Ship-to-shore Cranes

The US increased tariffs on imports of steel and aluminium, electric vehicles, semiconductors, batteries, battery parts, critical minerals, solar cells, ship-to-shore cranes, and medical goods from China, citing the stated goal of safeguarding American workers and businesses from China’s unfair trade practices.

The move emphasised the bipartisan spirit of the trade fight against China, which started under Donald Trump’s presidency and is still ongoing under Joe Biden’s government.

The new tariffs, enforced under Section 301 following the Trade Act of 1974, are expected to impact $18 billion in imports and appear to be driven by Biden’s electoral considerations—there is currently a political consensus that China’s economic policies have “stolen” jobs—and US worries about China’s dominance in strategic sectors at a time of great power rivalry that has spread to the new tech and green sectors.

President Biden has declared his plans to impose 25% tariffs on China-manufactured ship-to-shore (STS) cranes and other strategic sectors to curb China’s unfair trade strategies.

The heightened tariff rates, which will take effect this year, are part of a larger strategy to safeguard US workers, firms, and supply chains.

The decision comes amid heightened concerns regarding the security of US ports and probable cybersecurity threats from China-manufactured port equipment.

Shanghai Zhenhua Heavy Industries, a firm with close ties with the Chinese Communist Party, is a crucial supplier of STS cranes to US and worldwide ports.

The firm has come under greater scrutiny over its affiliations with the CCP and concerns that China would use its equipment as spying tools.

STS cranes are crucial to port operations, facilitating the movement of goods from ship to shore.

However, concerns have been raised regarding US ports’ security due to rising suspicions that China has embedded and used cranes for espionage reasons.

The White House published an Executive Order in February 2024 aimed at boosting national security, strengthening supply chains, and enhancing maritime cybersecurity to bolster port security.

As a part of this, the Biden Administration has committed to a $20 billion investment to boost the return of domestic STS crane manufacturing in the US.

More tariffs are expected to follow in 2025 and 2026 on semiconductors and lithium-ion batteries that aren’t used in electric vehicles, permanent magnets, graphite, surgical gloves, and rubber medical equipment.

The White House said Biden earlier had announced that raising tariffs on some aluminium and steel items would take effect in 2024.

Several lawmakers have called for significant hikes in China’s vehicle tariffs or an outright ban over data privacy issues.

Relatively few Chinese-manufactured light-duty vehicles are being imported now.

The United Auto Workers, a politically crucial union that endorsed Biden, said that the tariff moves would make sure that the transition to electric vehicles is justified.

Reference: Reuters

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Source: Maritime Shipping News