EU Electric Vehicle Probe Allegedly Biased Against China, Says Chinese Body
After President Joe Biden imposed steep tariffs on Chinese electric vehicles, solar panels, and other critical commodities, the United Steelworkers union and American industries are calling for harsher trade barriers against Chinese imports.
On Friday, the Alliance for American Manufacturing produced a report on China’s excess industrial capacity, echoing worries raised by the Biden administration and supporters about the threat of cheap and subsidized exports to American jobs.
The organization urged the reinstatement of a long-expired import surge protection tool developed in 2001, when Beijing joined the WTO, transforming China into a global export powerhouse.
Section 421 authorizes the United States to impose temporary levies to mitigate market disruptions caused by increases in imports from China’s low-cost manufacturing base, which joined the global trading system 23 years ago. The idea was to provide local sectors some breathing room as China transitioned to a market economy with a level playing field, but this never happened.
Only once, in 2009, did then-President Barack Obama use Section 421 to assist the United Steelworkers, whose members were being laid off by Chinese imports that inundated US tire manufacturing.
The measure increased Chinese tire levies to up to 35% from the WTO’s 4% rate, however Section 421 expired in 2013.
AAM advocated rejuvenating Section 421 in response to import surges in new industries such as EVs, solar, and semiconductors, as well as sustained surges in old sectors such as steel, glass, and tires.
It suggested changes that would allow for charges on Chinese import surges from third-party countries such as Mexico or Vietnam, as well as a faster tax levy before US output is irreparably affected. It also suggested broader and longer-term treatment options.
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