The U.S. Trade Representative (USTR) announced a two-week delay on the implementation of steep tariff increases on various Chinese imports, including a 25% duty on ship-to-shore cranes. Originally set to take effect on Thursday, the tariffs are now under review with a final determination expected in mid-August and implementation two weeks later. The USTR is currently reviewing 1,100 public comments on the matter.

 

In May, the Biden administration proposed tariff increases on Chinese imports, including electric vehicles, lithium-ion batteries, steel, aluminum, semiconductor chips, solar cells, and medical products, as a response to China’s trade practices. These tariffs, ranging from 25% to 100%, are set to be phased in over three years, starting in 2024.

 

Port authorities and industry groups have expressed concerns, particularly about the tariff on ship-to-shore cranes, as there are no U.S. manufacturers for these cranes and Chinese companies dominate the market. The Port Authority of New York and New Jersey estimated the new tariffs would increase the cost of each crane by a significant amount. Port Houston, which recently ordered eight cranes from Shanghai Zhenhua Heavy Industries Co., also raised concerns about the additional costs.

 

The American Association of Port Authorities (AAPA) argued there is no evidence of security issues with China-made cranes and highlighted that several ports have orders for 35 Chinese cranes, which could face additional costs due to the proposed tariffs.

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