China has decided to tax imported cars, including American-made vehicles, up to 21.5%.
MSNBC reports China claims the taxes are “due to dumping and subsidies.”
Reuters reports the taxes would start Thursday and last for at least two years. ‘
Bloomberg reports this decision is the latest in a battle between auto manufacturers in China and the U.S. The article indicates China made this tax decision just after the U.S. failed an attempt to block Chinese tires.
All major U.S. automakers will be affected by the tax.
In reaction to China's decision, Congressman Dave Camp (R-Midland, MI) as Ways and Means Committee Chairman, Ranking Member Sandy Levin (D-Royal Oak, MI), Trade Subcommittee Chairman Kevin Brady (R-TX), and Trade Subcommittee Ranking Member Jim McDermott (D-WA) issued the following joint statement:
“We are extremely concerned by China’s announcement today that it will impose new duties on U.S. auto exports. China’s actions are unjustifiable, and unfortunately, this appears to be just one more instance of impermissible Chinese retaliation against the United States and other trading partners. This action appears to violate China’s WTO commitments, and we urge the Administration to exercise all available options to enforce U.S. rights, including, as appropriate, enforcing U.S. rights at the World Trade Organization.”
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