The Biden administration has postponed its final decision on imposing significant tariff hikes on Chinese-made electric vehicles, batteries, semiconductors, and solar cells, announcing that a determination will be made public in the coming days. The delay comes amid ongoing U.S.-China trade tensions and follows recent high-level discussions between U.S. and Chinese officials.

A spokesperson for the U.S. Trade Representative’s Office (USTR) stated that the agency is still “developing the final determination regarding proposed modifications” to tariffs on Chinese goods that were initially imposed during the Trump administration in 2018 and 2019. The announcement was made shortly after White House National Security Adviser Jake Sullivan returned from talks in Beijing, where he met with senior Chinese officials, including President Xi Jinping. Both sides emphasized the importance of managing the U.S.-China relationship during these discussions.

The proposed tariff hikes, which include a 100% duty on electric vehicles, 50% on semiconductors and solar cells, and 25% on lithium-ion batteries and other key materials, were originally set to take effect on August 1. However, the USTR delayed the implementation to September, citing the need for more time to review over 1,100 public comments from various industries. The deadline was set for August 31 but has been pushed back once again, as announced on Friday.

This delay marks the administration’s first major trade decision since Vice President Kamala Harris became the Democratic Party’s presidential nominee, following President Joe Biden’s decision to step aside in late July. The decision on whether to ease the tariffs could be politically sensitive, as Harris may face criticism from Republicans for potentially taking a softer stance on China. Former President Donald Trump, a likely contender in the upcoming election, has vowed to impose tariffs of up to 60% on Chinese imports if re-elected.

Industries affected by the tariffs have expressed concerns about the potential impact on costs. Electric vehicle battery makers, including Ford Motor Co., have urged the USTR to reconsider the proposed 25% duty on graphite, a critical component in battery anodes, due to their current dependence on Chinese supplies. Additionally, U.S. port operators have warned that their costs for Chinese cranes under contract would rise, with no domestic producers available to supply the giant port cranes.

As the administration continues to deliberate, the outcome of this decision could have significant implications for the U.S.-China trade relationship and the broader economic landscape. The delay underscores the complexity of balancing domestic economic interests with geopolitical considerations in an increasingly fraught trade environment.

(Adapted from USNews.com)