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Proposed Increases to Section 301 Duties on Batteries, Battery Components, and Critical Minerals

International Trade

The U.S. Trade Representative (“USTR”) recently issued its report in the four-year review of Section 301 duties on goods imported from China.[1] As part of that review, USTR proposed imposing or increasing tariffs on a range of products.[2] Businesses that utilize products covered by these proposed tariff increases should consider submitting comments on the proposed Section 301 duties.

Among the products included in this proposal are those related to batteries and energy storage. Specifically, USTR proposes increasing Section 301 duties on:[3]

  • Lithium-ion batteries (for use in electric vehicles) from 7.5 percent to 25 percent in 2024;
  • Lithium-ion batteries (not for use in electric vehicles) from 7.5 percent to 25 percent in 2026;
  • Battery parts from 7.5 percent to 25 percent in 2024;
  • Natural graphite and permanent magnets from zero percent to 25 percent in 2026; and
  • Other critical minerals from zero percent to 25 percent in 2024. 

USTR has invited interested parties to comment on the proposed tariff action. The period for comments begins on May 29, 2024, and ends on June 28, 2024.[4] USTR is proposing that increases in 2024 be effective August 1, 2024, and that increases in 2025 and 2026 be effective January 1 of the corresponding year.[5]

For further information and assistance in preparing and filing comments and requests for exclusions with respect to Section 301 duties, contact Lynn G. Kamarck, Tyler J. Kimberly, or another member of Blank Rome’s International Trade group.

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© 2024 Blank Rome LLP. All rights reserved. Please contact Blank Rome for permission to reprint. Notice: The purpose of this update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This update should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.

[1] Office of the USTR Executive Office of the President, Four-Year Review of Actions Taken in The Section 301 Investigation: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (May 14, 2024).

[2] Id. at 85; USTR Section 301 Report at 85; see also USTR, Request for Comments on Proposed Modifications and Machinery Exclusion Process in Four-Year Review of Actions Taken in the Section 301 Investigation: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (unpublished) (Docket Number USTR-2024-0007), available at USTR FRN Four Year Review Proposed Modifications.

[3] See id. at 11–14. 

[4] Id. at 2.

[5] Id. at 7.