Three More Chinese EV Bills Introduced in Senate
This week, Senator Marco Rubio (R-Fla.) introduced three bills targeting Chinese vehicles. The Closing Auto Tariffs Loopholes Act would treat motor vehicles produced by a foreign adversary and its controlled entities as if they originated in the territory of the foreign adversary. The Strengthening Tariffs on Chinese Autos Act would impose a new tariff of $20,000 on all Chinese vehicles imported into the U.S. and the American Subsidies for American Autos Act would require vehicles to comply with the United States-Mexico-Canada Agreement’s (USMCA) rules-of-origin and labor value content criteria to qualify for any federal electric vehicle program.
The introduction of three additional bills related to the potential import of Chinese vehicles comes one week after Senator Josh Hawley (R-MO) introduced the Protecting American Autoworkers from China Act, which would increase the tariff on automobiles from China, regardless of where they were assembled, from the current 27.5% to 125%. Last week the Department of Commerce also announced that it would launch an investigation into the national security risk of Chinese technology in vehicles. The European Commission announced this week that it had found sufficient evidence to show that European automakers had been harmed by Chinese electric vehicle subsidies and could impose duties on Chinese EVs as soon as this summer.
Also this week, three Democratic Senators sent a letter to U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo urging them to take “addional action” to address what they say is a national security threat posed by the Chinese EVs. Senators Sherrod Brown (D-OH), Debbie Stabenow (D-MI) and Gary Peters (D-MI) urged that tariffs be increased on Chinese EVs and cheered the recently-announced Department of Commerce national security probe into highly connected vehicles.
State of the Union
President Joe Biden delivered the State of the Union address last night, but despite brief referenences to the ongoing rollout of public EV chargers, largely refrained from touting his administration’s EV push. United Auto Workers (UAW) President Shawn Fain was one of the Bidens’ guests for the remarks.
U.S./E.U.
The U.S. and E.U. announced this week that the next meeting of the U.S./E.U. Trade & Technology Council (TTC) will be held April 4-5 in Belgium. The group hopes to make progress on longstanding transatlantic trade irritants since it’s unclear if the TTC will continue pending the outcome of European and American elections this year.
TAKE ACTION
Late last year, the House of Representatives passed the Choice in Automobile Retail Sales (CARS) Act, which would permanently prohibit the EPA from finalizing its proposed emissions rule for model years 2027 and later. Dealers are urged to contact their Senators and ask that the Senate follow suit and pass the CARS Act TODAY.
Quotes of the Week
“America’s existing tariffs, once effective, are now insufficient to counter China’s newest strategies. But raising tariffs alone is not enough. We need a multi-pronged effort to prevent the Chinese Communist Party from entering the American auto market before it is too late.”
-Senator Marco Rubio (R-Fla.) (www.rubio.senate.gov)
“The China piece cannot be ... overstated. It is going to be – and it already is – a really important element of tension and concern that is coming up in this very intimate trade relationship that we have between three [USMCA} countries.”
-Katherine Tai, U.S. Trade Representative (Inside U.S.Trade)
ICYMI
AIADA will host an AutoTalk Webinar next week:
Charlie's Real-Time Quarterly Market Update
Thursday, March 1 – 2:00 p.m. ET
Cox Automotive Senior Economist Charlie Chesbrough returns to present the most up-to-date, real time data. Register Today!
Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
Mercedes-Benz of Fort Mitchell in Kentucky was a proud sponsor of the 33rd Annual Mardi Gras for the Homeless Children Event.
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
