“It is essential that tariffs on (Chinese) cars are not only maintained, but increased to stop the foreseeable increase in imports (from the Asian country),” they wrote in a document that has not been reported until now and that was seen by Reuters.
The USTR and China’s embassy in Washington did not immediately respond to requests for comment. The letter notes that the USTR should consider launching a new Section 301 investigation into Chinese vehicles “and the damage they pose to the American automotive industry and American workers.
You should also investigate”“What measures should be taken to counter (China’s) industrial strategy to dominate the global automotive market”adding that Washington “must be prepared to deal with the next wave of (Chinese) vehicles” that will be exported from trading partners, such as Mexicoadds the document.
According to the letter, the Asian country’s automobile manufacturers “seek to establish strategically operations outside (China) to take advantage of preferential access to the US market” through free trade agreements that the United States has.
American automobile producers have expressed concern about Chinese manufacturers. John Bozzella, chief executive of the Automotive Innovation Alliance, said in June that Washington’s proposed environmental regulations could allow China to “get a foothold in the U.S. electric vehicle battery supply chain and, ultimately, in our automobile market.
In September, the European Commission launched an investigation on the advisability of imposing punitive tariffs to protect European Union producers from Chinese imports of cheaper electric vehicles.
The lawmakers said the United States should work with its allies “to impose a coordinated response that collectively cushions demand in our markets.” The 25% tariffs on Chinese cars were imposed during the administration of then-President Donald Trump and expanded by the current administration.
The letter notes that “many of the EVs exported from China are manufactured by Western brands, such as tesla that have significant production capacity” in China.
The lawmakers noted that some American automakers are exporting Chinese-made vehicles to the North American country, which they believe shows that the current tariff level on imported vehicles is insufficient.