U.S. Republican U.S. Senator Josh Hawley (Josh Hawley) introduced a bill on Wednesday (February 28) to increase import tariffs on Chinese cars.
With the rise of China's new energy vehicles, Chinese manufacturing has swept overseas.
According to the statistics of the China Association of China, in January 2024, China's automobile exports were 4430,000 units, a year-on-year increase of 474%, continuing the rapid growth trend; Passenger car exports 3690,000 units, a year-on-year increase of 475%；Used car export 740,000 units, a year-on-year increase of 469%；New energy vehicle exports 1010,000 units, a year-on-year increase of 217%。
In 2023, China's automobile exports will be 4.91 million units (excluding used cars), a year-on-year increase of 579%, surpassing Japan for the first time to become the world's first.
In the face of an increasingly powerful China, the American Manufacturing Alliance (AAM) is increasingly concerned that cheap Chinese cars threaten the viability of U.S. auto companies.
Tesla CEO Elon Musk has also previously said that Chinese electric vehicle companies are the most competitive in the global market, and if there are no ** barriers, Chinese automakers will "destroy" overseas competitors.
Hawley's bill would take the base tariff rate from the current 2The 5% increase to 100% means that the total tariff on imported Chinese cars will be increased from the current 275% to 125%. The bill also seeks to increase tariffs by 100 percent on cars assembled in Mexico by Chinese automakers.
Hawley said Biden should take steps to protect U.S. auto workers "from the existential threat posed by Made in China."
According to Reuters on February 14, BYD plans to build a new electric vehicle factory in Mexico. Zou Zhou, head of BYD Mexico, said that BYD is considering the new Mexican electric vehicle plant as an "export hub" for the U.S. and overseas markets. The move has raised concerns in the United States.
In November 2023, a bipartisan group of lawmakers urged U.S. Representative Katherine Tai to raise tariffs on Chinese cars, saying that Tai's office "must also be prepared for the coming wave of Chinese car exports, which will be exported from our other partners, such as Mexico, as [Chinese] automakers look to strategically establish operations outside of [China]."
Tai said last month that Biden was closely reviewing China's "non-market policies and practices in the auto industry" and reviewing current tariff levels. At the same time, the delegate stressed that she was concerned about China's car exports, noting that high U.S. tariffs "will encourage Chinese companies to do business outside of China."
On February 23, the Alliance of American Manufacturers (AAM) urged Biden to block imports of cheap Chinese cars and parts from Mexico because they could threaten the viability of U.S. auto companies.
The entry of cheap Chinese cars into the U.S. market could eventually be devastating for the U.S. auto industry. The reason why these cars are so cheap is because they are supported and funded by China**. AAM said in a report.
The group argues that the U.S. should work to stop China-based companies from producing cars and parts in Mexico to prevent them from benefiting from the North American Freedom Agreement.
The commercial back door open to Chinese auto imports should be closed so as not to cause mass factory closures and worker job losses in the United States. AAM said in the report.
In this regard, the author believes that the "small courtyard and high walls" cannot stop the pace of China's innovation and development, nor is it conducive to the healthy development of the entire industry, including American enterprises.