Wednesday, 22 May 2024
WorldUS could impose more tariffs if Chinese electric vehicle production goes to...

US could impose more tariffs if Chinese electric vehicle production goes to Mexico

WASHINGTON (AP) — The U.S. government has hinted at the possibility of imposing additional tariffs if Chinese electric vehicle makers try to shift production to Mexico to avoid recently announced import taxes.

President Joe Biden on Tuesday directed the U.S. trade representative’s office to impose a full tariff of more than 102% on Chinese electric vehicles, as well as new tariffs on other products, including steel, aluminum, microprocessors and solar cells.

Prior to this, Chinese electric vehicle company BYD indicated it was looking for manufacturing sites in Mexico for the Mexican market. That opens the possibility that Chinese companies could use Mexico as a back door to enter the US market.

When asked at a White House news conference about new tariffs if Chinese companies produce in Mexico, U.S. Trade Representative Katherine Tai said, “Stay tuned.”

Tai said the imposition of additional tariffs would require “a separate track” from the review of Section 301 of the Trade Act of 1974. That four-year review generated tariffs on the equivalent of $18 billion in Chinese imports, which They were announced on Tuesday.

The official added that the tariffs with Mexico were “something we talked about to our industry, our workers and our partners.”

After Tai’s statements, the US Trade Representative’s office indicated that it could implement several actions in lieu of tariffs, highlighting the existence of provisions included in the free trade pact between Mexico, the United States and Canada, known as T-MEC, to address unfair subsidies and other measures to avoid import taxes.

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