Tariffs on certain products from China go into effect on 27 September 2024, with others expected to follow.  

The proposed tariff increases were revealed in May 2024, and some modifications were published by the Office of the US Trade Representative (USTR) in September 2024.  

Section 301 tariffs on chromium, cobalt, indium, tantalum, and tungsten will go into effect on 27 September 2024. Meanwhile, amended tariffs on steel and aluminium (0–7.5% to 25%), battery parts (7.5% to 25%), electric vehicles (EVs) (25% to 100%), lithium-ion for EVs (7.5% to 25%), and solar cells (25% to 50%) will also take effect on 27 September 2024, while tariffs on semiconductors (25% to 50%) will go into effect in 2025. Furthermore, tariffs on natural graphite (0% to 25%) and permanent magnets (0% to 25%) will take effect in 2026.  

The impacts of these tariffs on the critical material supply chains in question will be mixed. US imports of cobalt, chromium, and tungsten concentrates are small in tonnage terms compared to the size of these markets overall. Therefore, while China may have accounted for 60% of US cobalt ore supply last year, there are many alternative sources available from which to source the approximately 10t in question. Meanwhile, although China is responsible for 54% of the world’s total indium production, the USA already sources most of its indium requirements (90%) from Japan, Brazil, South Korea, Canada, and Taiwan.  

However, the most significant impact may be felt in the relatively small (~2,400t) tantalum market. US imports of tantalum may be small in tonnage terms, but China accounts for 25% of US supply. Thus, the USA, which is a major recycler of tantalum metal, will be affected by the increased tariffs on imported scrap and metal.