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Hawley's bill would raise the base tariff rate to 100% from 2.5
percent currently, which would mean a total tariff of 125% on
all imported Chinese autos from 27.5% currently. It also seeks
to apply the 100% tariff hike to vehicles assembled in Mexico by
Chinese-based automakers.
Hawley said President Joe Biden should take steps to protect
U.S. auto workers "from the existential threat posed by China."
A bipartisan group of lawmakers in November urged U.S. Trade
Representative Katherine Tai to boost tariffs on Chinese
vehicles, saying she should plan "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)."
Tai said last month the Biden administration is closely
reviewing "China's non-market policies and practices in its
automotive industry" and reviewing current tariff levels. Tai
said she is concerned about Chinese vehicle exports noting high
U.S. tariffs "have also encouraged Chinese firms to set up
operations outside China."
On Friday, a U.S. manufacturing advocacy group urged Biden to
block low-cost Chinese autos and parts from Mexico.
"The introduction of cheap Chinese autos - which are so
inexpensive because they are backed with the power and funding
of the Chinese government - to the American market could end up
being an extinction-level event for the U.S. auto sector," the
Alliance for American Manufacturing said in a report.
Donald Trump, who is seeking a second term as president in
November, has threatened to impose hefty new tariffs on Chinese
vehicle imports after hiking tariffs by 25% when he was
president.
The Chinese embassy in Washington said China's automobile
exports "reflect the high-quality development and strong
innovation of China’s manufacturing industry... The leapfrog
development of China’s auto industry has provided cost-effective
products with high quality to the world."
The issue has received new interest after news reports that
China's BYD plans to set up an EV factory in Mexico. BYD, known
for its cheaper models and a more varied lineup, recently
overtook its biggest rival, Tesla, to become the world's top EV
maker by sales.
(Reporting by David Shepardson; editing by Miral Fahmy)
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