Tariffs, Trade, And Manufacturing
Randy Wolken, President & CEO
This week, the White House announced an increase in tariffs on Chinese electric vehicles to around 100%. Beyond raising tariffs on electric vehicles, the White House said it would be increasing a key tariff rate on steel and aluminum products to 25% from 7.5%, while the tariff on solar cells would rise to 50% from 25%, and a new duty on shipping cranes would be 25%. Those tariff increases, among others, will kick in this year, while others, including a tariff increase to 25% from 7.5% for larger storage batteries and a new tariff on natural graphite set at 25%, will take effect in 2026.
China continues its market-distorting behavior that began with China’s 2001 entry into the World Trade Organization (WTO). Its behaviors have enabled it to dominate multiple global markets, including steel and solar panels, and threaten to do the same in advanced technology industries such as semiconductors.
China seeks to continue its abusive behaviors—from intellectual property theft to market-distorting industrial subsidies—that harm manufacturers and their employees in the United States and worldwide. MACNY believes we need a pragmatic approach to our relationship with China that works for U.S. manufacturers. We are pleased that there is an emerging consensus by all parties that we must hold China accountable, step up direct U.S. engagement with Chinese officials, and work to ensure that the U.S. and its Allies shape the global rules for trade.
As a nation, we must also invest in making ourselves more competitive. We need to implement a robust infrastructure investment. In a global market, we need vital investments to strengthen our ability to compete. On top of infrastructure, we will need critical investments in essential technologies such as semiconductors to remain at the forefront of the next generation of manufacturing opportunities. Alongside an increased emphasis on securing the talent for our industries, we can and will be successful. These areas of emphasis enhance both our national and economic security.
I remain convinced that New York and U.S. manufacturers can grow and produce the world-class products needed here and abroad. Please join us at MACNY in advocating for these actions by our elected officials at every level of government.