Impact of US tariff on permanent magnets imported from mainland China

Policy & Regulation

For the US to entirely reduce its reliance on Chinese permanent magnet imports, it may need to consider extending tariffs to encompass additional countries or encourage those nations to impose higher tariffs on Chinese imports

Announcement of US tariffs On May 14 the US announced changes in tariffs to thwart imports of electric vehicles, lithium-ion batteries and critical minerals such as graphite and permanent magnets from mainland China. As per the official announcement, in 2024, the tariff on EVs imported from mainland China will increase from 25% to 100%, the tariff on lithium-ion EV batteries will increase from 7.5% to 25%, and the tariff on battery parts will increase from 7.5% to 25%. The new tariffs will take effect on Aug. 1, the US Trade Representative’s office said May 22. The tariff on natural graphite and permanent magnets will be increased from 0% to 25%, which will come into effect from Jan. 1, 2026. As per the Biden administration, these measures have been taken to protect American manufacturers from China’s unfair trade practices.

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