The Biden-Harris Administration’s Investing in America agenda has successfully spurred more than $860 billion in business investments. In line with this, the White House has officially announced its intent to increase tariffs on Chinese imports.
President Biden has emphasized that American workers and businesses can outcompete their global counterparts if they have fair competition. However, China’s government has been criticized for engaging in unfair, non-market practices such as forced technology transfers and intellectual property theft.
According to the White House, these practices have enabled China to dominate the global production of essential inputs for various technologies, infrastructure, energy, and healthcare, posing substantial risks to American supply chains and economic security.
The Biden Administration’s policies aim to counter these challenges by fostering fair competition, reducing dependence on foreign supply chains, and strengthening domestic production capabilities.
To address issues related to technology transfer, intellectual property, and innovation, the President is directing an increase in tariffs on $18 billion worth of imports from China. These sectors include steel and aluminum, semiconductors, electric vehicles (EVs) and batteries, critical minerals, solar cells, and medical products.
Below, we focus on the key takeaways from three crucial sectors of US clean energy manufacturing:
Boosting the Domestic EV Industry
The Biden administration is significantly increasing tariffs on EVs from China to protect and promote American manufacturing. Here are the key details and implications:
- Tariff Increase: The tariff rate on electric vehicles under Section 301 will increase from 25% to 100% in 2024.
- Rationale: This dramatic increase responds to extensive subsidies and non-market practices in China, which have led to a 70% growth in Chinese EV exports from 2022 to 2023. This surge threatens productive investments in other regions.

- Objective: By imposing a 100% tariff, the administration aims to shield American manufacturers from these unfair trade practices, fostering a domestic EV industry built by American workers.
- Supportive Measures: the administration is incentivizing the development of a robust EV market through:
- Business tax credits for battery manufacturing and critical minerals production.
- Consumer tax credits for EV adoption.
- Federal investments in EV charging infrastructure.
- Grants supporting EV and battery manufacturing.
The U.S. isn’t alone in expressing concerns over China’s strides in “new energy vehicles.” The European Commission had initiated an inquiry into subsidized electric cars from China, probing whether Chinese battery EV value chains benefit from “illegal subsidization,” potentially harming EU BEV producers.
EU trade commissioner Valdis Dombrovskis recently noted that the investigation is progressing, hinting at possible tariffs before the summer break.
China has risen as the globe’s largest electric car market, buoyed by government policies and incentives to spur EV adoption. These include subsidies, tax incentives, and a credit system mandating car manufacturers to meet specified quotas, resembling a carbon credit trading scheme.
Strengthening the Battery Supply Chain
The administration is also increasing tariffs on various battery-related products and critical minerals to strengthen the domestic supply chain:
- Tariff Increases:
- Lithium-ion EV batteries: From 7.5% to 25% in 2024.
- Lithium-ion non-EV batteries: From 7.5% to 25% in 2026.
- Battery parts: From 7.5% to 25% in 2024.
- Natural graphite and permanent magnets: From 0% to 25% in 2026.
- Certain other critical minerals: From 0% to 25% in 2024.
- Rationale: China controls over 80% of certain segments of the EV battery supply chain, particularly upstream nodes like critical minerals mining, processing, and refining. This concentration poses risks to U.S. supply chains, national security, and clean energy goals.

- Supportive Measures:
- Nearly $20 billion invested in grants and loans to expand domestic production capacity for advanced batteries and battery materials.
- Manufacturing tax credits under the Inflation Reduction Act to incentivize investment in U.S. battery production.
- The American Battery Materials Initiative mobilizes government resources to secure a robust supply chain for batteries and their inputs.
RELEVANT: US Imports of Lithium and Critical Minerals Drop Amidst Shifting EV Market
Energizing the U.S. Solar Industry
Tariffs on solar cells will also be increased, with the following changes:
- Tariff Increase: The tariff rate on solar cells (whether or not assembled into modules) will increase from 25% to 50% in 2024.
- Rationale: China’s policy-driven overcapacity depresses prices and inhibits solar capacity development outside China. The country dominates 80-90% of certain parts of the global solar supply chain through nonmarket practices.
- Objective: The tariff increase aims to protect and foster the U.S. solar industry, encouraging investment in solar manufacturing and reducing dependency on Chinese imports.
- Supportive Measures:
- Supply-side tax incentives for solar components, such as polysilicon, wafers, cells, modules, and backsheet material.
- Tax credits, grants, and loan programs to support utility-scale and residential solar energy projects.
- Nearly $17 billion in planned investment in the U.S. solar supply chain announced under the Biden administration, an eight-fold increase in U.S. manufacturing capacity.
The US government’s strategic investments and policy measures aim to revolutionize the American manufacturing landscape, particularly in clean energy technologies. All these measures are designed to promote fair competition, protect American industries, and ensure a secure and resilient supply chain for critical technologies and clean energy.
The post U.S. Raises Tariffs on $8B China Imports: EVs, Batteries, and Solar Cells Included appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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