New Tariffs Imposed by the U.S. on China: Industry Impact and Global Supply Chain Restructuring

In May 2024, the U.S. government announced new tariffs on approximately $180 billion worth of Chinese goods, focusing on the new energy sector including electric vehicles, lithium batteries, and photovoltaic products. This policy will be implemented in phases starting September 1 of this year, marking a new phase in U.S.-China trade relations.

Key Areas and Tariff Increases:

Tariff on electric vehicles raised from 25% to 100%

Tariff on lithium batteries increased from 7.5% to 25%

Tariff on solar cells increased from 25% to 50%

New 25% tariff on semiconductors

Market Impact Predictions:

Impact on the U.S.:

Electric vehicle prices may rise by 40-60%

Cost of solar projects may increase by approximately 30%

Inflation rate may rise by 0.5-1 percentage points

Impact on China:

Profit margins of new energy export companies under pressure

Accelerated shift of the supply chain to Southeast Asia

Forced industrial upgrade and transformation

Recommendations for Companies:

Explore diversified markets (EU, ASEAN, etc.)

Consider layout of overseas production bases (Mexico, Vietnam, etc.)

Enhance product technological content and added value

Strengthen supply chain risk management

Expert Opinions:

Global supply chains will face restructuring

China may introduce reciprocal countermeasures

Medium to long-term may change the global trade pattern

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