In a bold move, Republican Senator Josh Hawley is set to introduce legislation that would significantly raise tariffs on Chinese vehicle imports, citing concerns about their impact on U.S. car companies. The proposed bill aims to elevate the base tariff rate from the current 2.5% to a substantial 100%, resulting in a total tariff of 125% on all Chinese autos entering the U.S. market. Senator Hawley emphasizes the need to shield U.S. auto workers from what he deems an “existential threat” posed by Chinese competition.
The bipartisan push for increased tariffs gained momentum in November when lawmakers urged U.S. Trade Representative Katherine Tai to address the influx of Chinese vehicles, especially those exported through other trading partners like Mexico. Senator Hawley’s bill now echoes these concerns, urging President Joe Biden to take decisive actions to safeguard the American automotive sector.
The U.S. Trade Representative, Tai, has acknowledged the need to review China’s automotive industry practices and current tariff levels, expressing worries about Chinese firms establishing operations outside their home country. As this issue gains attention, a manufacturing advocacy group urges President Biden to prevent the entry of low-cost Chinese autos and parts from Mexico, considering it a potential threat to the U.S. auto sector.
The proposal comes amidst reports of China’s BYD planning to set up an electric vehicle (EV) factory in Mexico, intensifying concerns about the competitive edge of Chinese automakers. BYD’s recent achievement of surpassing Tesla as the world’s top EV maker adds urgency to the debate surrounding the impact of Chinese vehicles on the global automotive market.
