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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Critical mineral entities with operations in the United States praised a decision from the Biden administration to enact tough new tariffs on Chinese products, though part of the sector dependent on those materials is fading.
U.S. President Joe Biden this week announced $18 billion in new tariffs on Chinese imports, targeting everything from steel and aluminum to critical minerals and solar cells.
"The president's action today is a part of his vision to rebuild our supply chains and our ability to make things in America to lower costs, outcompete the PRC, and encourage the elimination of practices that undercut American workers and businesses," Trade Representative Katherine Tai said, referring to the People's Republic of China (PRC). "We are doing that by investing in manufacturing and clean energy here at home and raising tariffs to protect these investments."
At least since the bankruptcy scandal surrounding Solyndra in 2011, a U.S. solar power company propped up by federal loans to compete against China, the PRC has been accused of dumping cheap goods and materials on foreign markets.
As recently as April, the Solar Energy Industries Association and several other trade groups called for action against primarily Chinese-headquartered companies they say threaten to turn the U.S. market into "a dumping ground for foreign solar products."
On Wednesday, it was critical mineral companies and associations lauding the latest action against China. Westwater Resources (NYSE:WWR) (Centennial, Colorado), a company working to develop a graphite mine in Alabama that will support electric vehicle batteries, said the tariffs would give the U.S. industry a leg up.
"These tariffs are just what the new and critically important U.S.-based natural graphite industry needed to compete with the monopoly that exists in China today and only strengthen Westwater's value proposition as we move to secure additional customers," said Jon Jacobs, the company's chief commercial officer.
The Biden administration has been keen on a Made-In-The-U.S.A. sector supporting technologies from super-fast computers to EVs. His signature Inflation Reduction Act is filled with incentives, though those are only valid for domestically-made items.
Tariffs, however, are something of a double-edged sword as sectors that may depend on foreign goods in the supply chain could experience economic headwinds, resulting in widespread job losses. It could also make many of the products that depend on foreign goods more costly, just as many in the United States are struggling with lingering inflationary pressures.
Speaking Tuesday, however, Biden said his efforts were meant to support the American workforce.
"We're not going to let China flood our market, making it impossible for American automobile manufacturers to compete fairly," he said.
EVs from China will see tariffs jump from 27.5% to 100%. That might not have a dramatic impact on the market, however, as sales of EVs in the United States are on the decline.
The U.S. Energy Information Administration (EIA), the data provider of the Department of Energy, reported that sales of hybrid vehicles, plug-in hybrid electric vehicles and battery electric vehicles (BEVs) accounted for 18% of total light-duty vehicle (LDV) sales in the U.S. in the first quarter. That's down nearly 1% from fourth quarter levels.
The decline for BEVs is the first since the economic impacts from the COVID-19 pandemic began in the second quarter of 2020.
The EIA attributed the downturn to seasonal factors, with sales usually dropping off in first quarter, a big decline in sales of luxury model EVs and a decline in mass-market sales of BEVs.
Industrial Info is tracking $60 billion worth of EV-related projects under construction in the U.S. market. For more information, see May 15, 2024, article - EIA: U.S. EVs, Hybrid Sales Dip Slightly in Q1.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
U.S. President Joe Biden this week announced $18 billion in new tariffs on Chinese imports, targeting everything from steel and aluminum to critical minerals and solar cells.
"The president's action today is a part of his vision to rebuild our supply chains and our ability to make things in America to lower costs, outcompete the PRC, and encourage the elimination of practices that undercut American workers and businesses," Trade Representative Katherine Tai said, referring to the People's Republic of China (PRC). "We are doing that by investing in manufacturing and clean energy here at home and raising tariffs to protect these investments."
At least since the bankruptcy scandal surrounding Solyndra in 2011, a U.S. solar power company propped up by federal loans to compete against China, the PRC has been accused of dumping cheap goods and materials on foreign markets.
As recently as April, the Solar Energy Industries Association and several other trade groups called for action against primarily Chinese-headquartered companies they say threaten to turn the U.S. market into "a dumping ground for foreign solar products."
On Wednesday, it was critical mineral companies and associations lauding the latest action against China. Westwater Resources (NYSE:WWR) (Centennial, Colorado), a company working to develop a graphite mine in Alabama that will support electric vehicle batteries, said the tariffs would give the U.S. industry a leg up.
"These tariffs are just what the new and critically important U.S.-based natural graphite industry needed to compete with the monopoly that exists in China today and only strengthen Westwater's value proposition as we move to secure additional customers," said Jon Jacobs, the company's chief commercial officer.
The Biden administration has been keen on a Made-In-The-U.S.A. sector supporting technologies from super-fast computers to EVs. His signature Inflation Reduction Act is filled with incentives, though those are only valid for domestically-made items.
Tariffs, however, are something of a double-edged sword as sectors that may depend on foreign goods in the supply chain could experience economic headwinds, resulting in widespread job losses. It could also make many of the products that depend on foreign goods more costly, just as many in the United States are struggling with lingering inflationary pressures.
Speaking Tuesday, however, Biden said his efforts were meant to support the American workforce.
"We're not going to let China flood our market, making it impossible for American automobile manufacturers to compete fairly," he said.
EVs from China will see tariffs jump from 27.5% to 100%. That might not have a dramatic impact on the market, however, as sales of EVs in the United States are on the decline.
The U.S. Energy Information Administration (EIA), the data provider of the Department of Energy, reported that sales of hybrid vehicles, plug-in hybrid electric vehicles and battery electric vehicles (BEVs) accounted for 18% of total light-duty vehicle (LDV) sales in the U.S. in the first quarter. That's down nearly 1% from fourth quarter levels.
The decline for BEVs is the first since the economic impacts from the COVID-19 pandemic began in the second quarter of 2020.
The EIA attributed the downturn to seasonal factors, with sales usually dropping off in first quarter, a big decline in sales of luxury model EVs and a decline in mass-market sales of BEVs.
Industrial Info is tracking $60 billion worth of EV-related projects under construction in the U.S. market. For more information, see May 15, 2024, article - EIA: U.S. EVs, Hybrid Sales Dip Slightly in Q1.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
