A number of politicians in the U.S. are asking the Biden administration to increase tariffs on vehicles produced in China due to the threat they pose to the local industry.
The letter addressed to U.S. Trade Representative Katherine Tai from Republican Mike Gallagher, Democrat Raja Krishnamoorthi, and Michigan Representatives Haley Stevens and John Moolenaar encourages the administration to increase tariffs on Chinese vehicles from the current 25%. These tariffs were introduced by the Trump administration.
“It is critical that tariffs on (Chinese) automobiles not only be maintained but also increased to stem the expected surge in (Chinese) imports,” the letter reads. “[The U.S.] must also be prepared to address the coming wave of (Chinese) vehicles that will be exported from our other trading partners, such as Mexico, as (Chinese) automakers look to strategically establish operations outside of (China) to take advantage of preferential access to the U.S. market through our free trade agreements.”
The lawmakers behind the letter also assert that the U.S. Trade Representative should launch a new Section 301 investigation into Chinese vehicles due to “the harm they pose to the American automotive industry and American workers.”
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In addition, the letter noted that many EVs exported from China are produced by Western brands, including Tesla, and that some U.S. car manufacturers are currently exporting Chinese-made vehicles into the U.S., Reuters reports.
Chinese car manufacturers are not currently selling vehicles in the U.S., at least not directly. However, brands like Geely are building vehicles in China and selling them in the U.S., through its Polestar brand for example. The number of vehicles built in China and sold in America is expected to grow considerably in the coming years and lawmakers are clearly fearful they could carve out a large segment of the market as they are doing in Europe.
