Biden admin doubling tariffs on Chinese solar panel parts after reported 'industrial espionage'

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The Biden administration will double tariffs on Chinese-made solar products just weeks before the end of President Joe Biden's term, citing reported cyber theft and industrial espionage concerns.

The Office of the United States Trade Representative (USTR) announced on Wednesday that the administration will be increasing tariffs on solar wafers and polysilicon made in China from 25% to 50%, while the tariff on certain tungsten products will increase to 25%. Solar wafers are used to make photovoltaic cells that convert sunlight into electricity, a key component in developing solar panels. Polysilicon, a form of silicon, is also used for making solar panels, as well as microchips for electronic devices.

"The tariff increases announced today will further blunt the harmful policies and practices by the People’s Republic of China," USTR Ambassador Katherine Tai said in a statement. "These actions will complement the domestic investments made under the Biden-Harris Administration to promote a clean energy economy, while increasing the resilience of critical supply chains."

The rate increase will go into effect on Jan. 1.

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China's national flag flutters on Pingtan island, the closest point in China to Taiwan's main island, in southeast China's Fujian province on December 11, 2024. (Adek Berry)

The new tariff was a result of a four-year Section 301 investigation into the People’s Republic of China, which reportedly found that "the PRC’s harmful forced technology transfer practices – in particular its cyber theft and industrial espionage – have continued, and in some instances, worsened," according to a USTR press release.

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The Biden administration announcement was made shortly after President-elect Donald Trump threatened more tariffs on the country once he assumes the presidency. 

President-elect Donald Trump threatened a tariff on China when he assumes office. (Evan Vucci, File)

Trump said China can expect "an additional 10% tariff, above any additional tariffs" until the country cracks down on illegal fentanyl smuggling.

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Days after Trump's tariff threat, China announced that it would ban exports of critical minerals to the U.S., such as antimony, gallium and germanium.