US senator proposes barring Chinese OEMs from using other countries for production to evade tariffs

US senator proposes barring Chinese OEMs from using other countries for production to evade tariffs

Republican senator in the United States, Marco Rubio has proposed barring Chinese manufacturers from evading US tariffs through the setting up of factories in other, ‘third countries’ such as Mexico, Vietnam or Malaysia, Reuters has reported.

Rubio accused Chinese manufacturers of moving production to other countries in order to face lower tariffs in the US, and said that doing so allowed them “to evade tariffs and flood the US market with cheap goods.”

In March, the Republican senator proposed legislation to extend higher tariffs to vehicles produced by Chinese manufacturers in other countries such as Mexico, echoed by former United States president and current presidential candidate Donald Trump who threatened to impose a 100% tariff on cars, including EVs, from Chinese brands.

An example of the ‘third country’ move that enables a manufacturer to potentially get around tariffs on China-made EVs is BYD, which opened a plant in Rayong, Thailand to expand its manufacturing footprint beyond its native China.

US senator proposes barring Chinese OEMs from using other countries for production to evade tariffs

The Chinese brand announced at the end of last year that it will be opening its first European EV factory in Szeged, Hungary, as part of its plan to open two EV plants in Europe.

In May, US president Joe Biden announced new tariffs on China-made goods, including EVs which saw duties quadrupled from 25% to 100%.

These tariffs were locked in by the US trade representative last week, according to a separate Reuters report, and includes a new 25% tariff on lithium-ion batteries, minerals and components. Those for EVs will take effect on September 27, while those for all other devices will take effect on January 1, 2026.

North of the border, Canada has also announced earlier this month that it will impose a 100% tariff on electric vehicles made in China, a move that has also been mirrored by the European Union, which will be applying additional tariffs of up to 38.1% on EVs made in China and exported to the EU.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • President Xi on Sep 20, 2024 at 4:05 pm

    China number one!

    Like or Dislike: Thumb up 13 Thumb down 5
  • The problem is more than just dumping goods. The bigger problem is the imminent conflict with this country. This middle kingdom have conflict with almost all its neighbors at south china sea, across the pacific and Atlantic ocean to bays of bengal. Then you can kiss your warranty and spare parts goodbye.

    Like or Dislike: Thumb up 14 Thumb down 50
    • Never expected ioma would stoop that low to fear mongering. Wait, who am i kidding. This is ioma that spread all kinds of fake infos and news over the years.

      Like or Dislike: Thumb up 1 Thumb down 1
  • is this evading tariff or to attract foreign investor to create and expand local job opportunities and tech advancement?

    Like or Dislike: Thumb up 29 Thumb down 0
    • Uncle Sam dont care about other countries’ economy. US only care about maintaining the status of No 1 economy and countries continue trading in USD, hence the fear mongering campaign against China over the few years.

      Like or Dislike: Thumb up 0 Thumb down 1
  • ROTI CANAI on Sep 20, 2024 at 8:52 pm

    Lol typical. Time for expensive cars from Europe to die.

    Like or Dislike: Thumb up 25 Thumb down 3
    • Kwai lohs with poor attitude..a clear and present danger on Sep 21, 2024 at 6:41 pm

      The west ..very poor losers.Cannot compete,they raise 100% tariffs.They also gave preferential treatment to their own Evs.
      Like it or not,not every westerner likes tesla.They will still buy Chinese Evs.
      In the end,the Chinese Evs will still thrive…long live the “I will survive ” culture of the Chinese people.

      Like or Dislike: Thumb up 1 Thumb down 0
  • Aduyai on Sep 21, 2024 at 8:10 pm

    Its just dumb when their own brand contracted chinese company to make parts for them.
    Guess where some Mopar parts are made?

    Your people wants something u cannot deliver. Fixed that lah brader.

    Like or Dislike: Thumb up 0 Thumb down 0
  • DonkeyKong on Sep 22, 2024 at 12:12 pm

    United States is an empire in decline thanks to the woke virus and the lowering IQ of its population year after year. Their gene pool has been mongrelized with so much inferior genes now and they’re being flooded with uncivilized immigrants. Just a matter of time before the intelligent immigrants start to leave the US.

    They still think they’re Globocop and can dictate how foreign companies conduct business. They still want to impose their global hegemony although they’re spreading degeneracy worldwide through Hollywood and their mass media with all the disgusting rainbow and BLM crap.

    The non-aligned world is saying “up yours” to the US. Even their traditional allies have pivoted towards a multipolar world. There’s nothing much the US can do about it.

    Like or Dislike: Thumb up 2 Thumb down 1
  • cannot brain on Sep 23, 2024 at 1:27 pm

    “bring cheap products to the US” is bad? Consumers can enjoy cheaper things is bad? More bang for the buck is bad? oh these orang putih really losing their minds

    Like or Dislike: Thumb up 1 Thumb down 0
  • ang moh on Sep 23, 2024 at 1:29 pm

    as usual, ban the competition.
    orang putih mindset

    Like or Dislike: Thumb up 0 Thumb down 1
 

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