The Biden administration is imposing higher tariffs on Chinese solar panel components following allegations of industrial espionage.

The Biden administration will impose higher tariffs on Chinese-made solar products prior to the conclusion of President Joe Biden's term, due to reported cyber theft and industrial espionage concerns.

On Wednesday, the Office of the United States Trade Representative (USTR) announced that the administration will be increasing tariffs on solar wafers and polysilicon made in China from 25% to 50%, while the tariff on certain tungsten products will increase to 25%. Solar wafers are used to make photovoltaic cells that convert sunlight into electricity, a key component in developing solar panels. Polysilicon, a form of silicon, is also used for making solar panels, as well as microchips for electronic devices.

"USTR Ambassador Katherine Tai stated that the announced tariff increase will help combat harmful policies and practices by the People’s Republic of China. This move will complement the domestic investments made under the Biden-Harris Administration to promote a clean energy economy and increase the resilience of critical supply chains."

The rate increase will go into effect on Jan. 1.

The new tariff was a result of a four-year investigation into the People's Republic of China, which found that the PRC's harmful forced technology transfer practices, including cyber theft and industrial espionage, have continued and worsened, according to a USTR press release.

After President-elect Trump threatened more tariffs on the country, the Biden administration made an announcement shortly thereafter.

Trump announced that China will face an additional 10% tariff on top of any other tariffs until the country takes action against illegal fentanyl smuggling.

Following Trump's tariff threat, China declared a ban on exporting critical minerals to the U.S., including antimony, gallium, and germanium.