On May 14, 2024, the Office of the United States Trade Representative (U) announced the results of the four-year review of the Section 301 tariffs on China. They have decided to further increase the tariffs on electric cars, lithium batteries, photovoltaic cells, critical minerals, semiconductors, as well as steel and aluminum, port cranes, and personal protective equipment (concentrated in seven sectors) imported from China, on top of the existing Section 301 tariffs. Specific, the tariff on Chinese electric cars will be increased from 25% to 100%. The tariff on lithium-ion batteries and their components for electric vehicles will rise from the current 7.5% to 25%. The tariff on solar panels will increase from 25% to 50%, and the tariff on semiconductors will go up from 25% to 50%. The tariffs on certain steel and aluminum products will be raised from 0-7.5% to 25%. Additionally, the tariff on natural graphite, permanent magnets, and certain other critical minerals will be increased from zero to 25%. China firmly opposes and strongly protests against these measures. The White House website released a statement indicating that the Biden administration will maintain the tariff policies implemented by the previous Trump administration and increase tariffs on other goods. The White House claims that the new measures will impact approximately $18 billion worth of imported goods from China, including steel and aluminum, semiconductors, batteries, critical minerals, solar panels, and cranes. Chinese response: Will take resolute measures. The spokesperson of the Ministry of Commerce stated that the US side, driven by domestic political considerations, has abused Section 301 tariff review process and further increased tariffs on certain Chinese products. This moveizes and instrumentalizes trade issues, and represents a typical case of political manipulation. China strongly expresses its dissatisfaction with this. The WTO has already ruled that Section 301 tariffs violate WTO rules. Instead of making corrections, the US side persists in its wrongdoings. The spokesperson of the Ministry of Commerce stated that the U.S. side, for domestic political considerations, has abused the 301 tariff review process and further increased tariffs on certain Chinese products. This politic and instrumentalization of trade issues are typical political manipulations, and China expresses strong dissatisfaction with this. The has already ruled that the 301 tariffs violate WTO rules. Instead of correcting its mistakes, the U.S side persists in its wrong actions. The spokesperson further mentioned that the U.S. increase in the 301 tariffs goes against President Biden's commitment of not seeking to suppress or contain China's development and not seeking to decouple or disengage from China. It also contradicts the spirit of consensus reached between the leaders of the two countries and will severely impact the atmosphere of bilateral cooperation. The U.S. side should immediately correct its wrongdoings and cancel the additional tariffs on China. China will take resolute measures to defend its legitimate rights and interests. Chinese Foreign Ministry spokesperson Wang Wenbin said that China has always opposed unilateral imposition of tariffs that violate WTO rules and will take all necessary measures to safeguard its legitimate rights and interests. An anonymous senior U.S. official stated that some of the tariff increases will take effect at a later time to allow for a transition period for the United States to expand domestic production capacity. According to China Jincai Fortune Futures, the recent increase in tariffs by the United States on certain Chinese steel and aluminum products may have a significant impact on the price of aluminum. This is because China's exports of aluminum and aluminum products to North America accounted for around 20% of the total 2023. If the new tariffs are implemented, it could heavily impact domestic aluminum exports, while the expectation of aluminum shortages overseas may continue to rise. Additionally, with the sanctions on Russian aluminum by the United Kingdom and the United States, followed by the U.S. actions against China, there may be a suppression effect on the market in the short term due to the increase in international prices. However, in the medium term, as Russian aluminum flows into the domestic market and if there is sufficient supply of spot goods, it may exert pressure on the market.