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Crazy! Imposing 920% tariff on China?

Samira Samira 2024-12-28 09:14:58

Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, focusing on markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~

It is reported that North American graphite miners have made a request to the US government, hoping to impose tariffs of up to 920% on battery metals supplied from China in response to so-called "unfair trade practices."

 

The reason is that China has carried out low-price dumping through large-scale subsidies, which has led to excess graphite production capacity and price chaos, and has had an impact on domestic manufacturers in the United States. Although there is currently a 25% tariff, it believes that this is not enough to prevent China's dumping behavior.

 

On December 19, local time, the American Active Anode Material Producers (AAAMP) organization, composed of graphite manufacturers in the United States and Canada, called on the U.S. Department of Commerce and the U.S. International Trade Commission to investigate whether China is unfairly Price, export of natural and synthetic graphite to the United States.
 
The investigation is jointly conducted by the U.S. Department of Commerce and the ITC. If the investigation finds that China's behavior is true, the U.S. Department of Commerce may assess additional tariffs to offset the so-called unfair subsidies.
 
According to the alliance statement, some experts believe that anti-dumping tariffs should reach a level of 920%. Although the final ruling may not be completed until the end of 2025, starting from the preliminary ruling, it is possible that the tariffs will take effect earlier during the investigation.
 
If both the U.S. Department of Commerce and the U.S. International Trade Commission make an affirmative preliminary determination, an initial tariff bond will be imposed, with the potential for retroactive tariffs if there is a surge in imports as a result of the application.
 
 
 
The United States is extremely dependent on Chinese graphite
 
 
 
China controls more than 90% of the world's supply of high-quality graphite and is critical to the U.S. electric vehicle and battery industries. Data shows that Chinese graphite will account for 77% of total U.S. imports in 2023, which can be called the "lifeblood" of the U.S. new energy vehicle industry. Once China tightens exports, battery manufacturing costs in the United States will soar, causing heavy damage to the entire economy.
 
In addition, China’s influence in the graphite market and its dependence on the United States are also evident. Graphite plays an important role in the global market, especially in the field of electric vehicle batteries. China is both the leader in the graphite supply chain and a key supplier in the international market.
 
 
Graphite accounts for up to 10% of the manufacturing cost of electric vehicle batteries, and China accounts for 92% of the market share. The U.S. new energy automobile industry is extremely dependent on Chinese graphite. The distribution and price fluctuations of global graphite resources also make it difficult for other countries to quickly fill the gap.
 

This move by the United States may seem tough, but it actually hides many deep-seated problems. First of all, although the US's "anti-dumping" accusations seem reasonable, they are actually short-sighted. Graphite is a key raw material in many fields such as batteries, nuclear industry, and military industry. The United States' attempt to suppress China's graphite market share through high tariffs is tantamount to shooting itself in the foot.

 

This is not only a simple trade dispute, but also an in-depth game between technology and industry.

 

It is reported that US President-elect Trump has repeatedly threatened to impose widespread tariffs on Chinese products. On December 11, the Office of the United States Trade Representative (USTR) announced the imposition of additional Section 301 tariffs on tungsten products, polysilicon and other products imported from China, which will take effect on January 1, 2025.

 

In response, a spokesperson of the Chinese Ministry of Commerce said that China’s position against unilateral tariff increases is consistent and China has made solemn representations to the United States on many occasions.

 

The U.S. tariff measures will not only not solve the U.S. trade deficit and industrial competitiveness issues, but will also push up inflation in the U.S., harm the interests of U.S. consumers, and seriously undermine the international economic and trade order and the security and stability of global industrial and supply chains.