Automotive News China reports the United States is set to file a complaint with the World Trade Organization against China for tariffs on American-built vehicles. The duties cover around 80-percent of the vehicles imported from the U.S. and are expected to cost U.S. automakers $3.3 billion. Interestingly enough, General Motors and Chrysler vehicles face higher tariffs than those of other automakers due to the government bailout those manufacturers received under presidents George W. Bush and Barack Obama.

Models like the Jeep Wrangler and Grand Cherokee face tariffs of around 15 percent, while the Buick Enclave and Cadillac CTS face duties of nearly 22 percent. For comparison, the Acura TL, which is built in Marysville, Ohio, gets away with a 4.1 percent tariff. Even so, The Detroit News reports the duties are somewhat symbolic, since vehicles assembled in the U.S. are already expensive to purchase in China.

The White House, meanwhile, said it is filing the complaint because "China must play by the rules of the global trading system."


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  • 35 Comments
      RocketRed
      • 2 Years Ago
      I dont know if car tariffs are bound in China's accession agreement, but it sounds to me like China is slapping an anti-subsidies duty and/or dumping duty on the bailout-companies, which would be outside that issue. The U.S. would have to show that China's proceedings were basically corrupt and did not measure any relevant facts, which is not easy, and the remedy would be a new proceeding, not cancellation of the duties. Contrary to stereotype, China's proceedings are no less transparent than, say, the EU. Economically, this won't cost U.S. makers anything. The duties will be paid by the importer. Even if the U.S. firms had their own importer firms, which they likely can't under Chinese law, the demand for Caddies and Buicks is basically inelastic over there and the real estate baron customers will eat the entire duty if added to the sticker. At least until that commercial real estate bubble over there final pops---at which point GM, VW, etc, who rely on that market for their profitability will have greater concerns than a 15% tariff.
      ss1591
      • 2 Years Ago
      I have a better way to solve this just put tariffs on all the products that come from China no exceptions. They require GM, Ford and all other car makers to have partners so they can turn around and someday sell cars here with technology they got from us. These things are easy to solve we just need politicians with the guts to do it.
        boardin85
        • 2 Years Ago
        @ss1591
        The biggest problem is that we are so reliant on cheap chinese stuff. If we impose a tax on chinese goods, the price of nearly everything we buy goes up and so does our cost of living. I understand your sentiments, but it's unfortunately a much more complex issue than you're making it out to be.
      d
      • 2 Years Ago
      like the tariff we place on chinese made tires? Or how about 20-250% we place on chinese made solar panels?
      Jeff Brown
      • 2 Years Ago
      China doesn't play by the rules....currency manipulation, intellectual property theft, human rights violations, bogus tarriffs. The US allows them to continue playing these games at the expense of our economy (jobs, taxes, etc.). Standing up to the Chineses is necessary. Make no mistake it won't be pretty and the US will suffer too depedning on how China reacts (trade war, physical war, dumping of US Treasuries, etc.). So they are consequences to both the status-quo and standing up to them. Regardless, I think the US needs to act soon.
        clquake
        • 2 Years Ago
        @Jeff Brown
        Outside of the US, China buys most of the US debt. If they stopped, the US stops dead in it tracks. Europe has their own crisis, there's no one else who will buy US debt.
        Famsert
        • 2 Years Ago
        @Jeff Brown
        Funny because the US is guilty of all of the above as well.
        Tim
        • 2 Years Ago
        @Jeff Brown
        Poor view and poor Jeff
      mr.vw
      • 2 Years Ago
      It should be global free trade by now and hopefully we'll see better selection of vehicles. Let the strongest survive that is smart business and not bail out terrible car companies.
        • 2 Years Ago
        @mr.vw
        [blocked]
          clquake
          • 2 Years Ago
          Blind patriotism gets you cars from the 80's. The big three only improved because they had to due to competition from the rest of the world.
      • 2 Years Ago
      [blocked]
        mchlrus1
        • 2 Years Ago
        And we start by actually buying these products when we make them. Buy domestic cars; they are competitive now.
      Yang Xi Gua
      • 2 Years Ago
      I wonder if Mexican-built Ford Fusions were subject to any tariffs.
        merlot066
        • 2 Years Ago
        @Yang Xi Gua
        The 2013 model is being assembled in America, but I've never heard of Ford exporting Fusions to China.
        • 2 Years Ago
        @Yang Xi Gua
        [blocked]
          Brandon
          • 2 Years Ago
          What does the North American Free Trade Agreement have to do with importing Mexican Built Fusions to China?
      ducman69
      • 2 Years Ago
      The US has no balls. Threaten to place a tax on China, who's economy is completely dependent on Americans buying their crap, and they would spaz out and remove all import taxes immediately.
        RocketRed
        • 2 Years Ago
        @ducman69
        Wal-Mart would march on DC and turn the White House into a branch office if any president decided to slap prohibitive tariffs on Chinese consumer good imports. Never going to happen.
        icon149
        • 2 Years Ago
        @ducman69
        no one in the US could afford to live without china. besides, we owe them so much money. It's hard to bully the person who bought your house about what he charges to mow the lawn. They have us by the economic balls. they squeeze, we apologize and go about our buiness buying iphones and tv's and appliances from china.
          mchlrus1
          • 2 Years Ago
          @icon149
          What would be the cost of the I phone if it were produced in the US. I'm curious if Apple would be able to sustain.
      SpikedLemon
      • 2 Years Ago
      Kettle: meet Pot.
      BlackDynamiteOn
      • 2 Years Ago
      I think we need another military base in China. Problem solved...... BD
        Yang Xi Gua
        • 2 Years Ago
        @BlackDynamiteOn
        but can it handle millions of IEDs?
        • 2 Years Ago
        @BlackDynamiteOn
        [blocked]
      • 2 Years Ago
      [blocked]
      Yang Xi Gua
      • 2 Years Ago
      Why is TL subject to tariffs?
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