The Office of the US Trade Representative (USTR) indicated that electric vehicles manufactured in China would be subject to a 100% tariff, while solar cells would face a 50 per cent tariff. Additionally, a 25 per cent tariff would apply to EV batteries, critical minerals, aluminium, and steel.

A proposal was made for a 50 per cent tariff on polysilicon used in solar panels starting in 2025. However, the USTR established 14 tariff exclusions to temporarily exempt machinery for solar cell and wafer manufacturing. These exclusions will be applicable to products imported from January 1, 2024, until May 31, 2025. The USTR also chose not to proceed with five other proposed exclusions related to solar module manufacturing equipment.

The USTR noted that the modifications announced in May 2024 were mostly adopted, incorporating several updates to enhance protections for American businesses and workers against what it termed China’s “unfair trade practices,” following the review of over 1,100 public comments.