USTR Katherine Tai said the European Union’s decision to issue tariffs “demonstrates the need to confront the PRC’s non-market policies and practices.”
U.S. Trade Representative (USTR) Katherine Tai on Monday issued an official statement to offer her support for the European Union’s (EU) recent decision to impose anti-subsidy trade duties on imports of electric vehicles from China.
A majority of EU member states voted on Oct. 4 to issue tariffs on battery electric vehicles from China. The vote came after an investigation by the European Commission found that Chinese-made vehicles benefit from “unfair subsidisation” and pose an economic threat to European automakers.
The EU’s decision is another step forward in coordinating a global response to China’s continued unfair trade practices. The United States finalized higher tariffs on a number of Chinese imports on Sept. 13, including a 100% tariff on Chinese electric vehicles. Canada announced in late August that it also would impose a 100% tariff on Chinese EVs.
In her statement, Tai noted that the EU’s decision to impose trade duties is a step forward in combatting trade malpractices by the People’s Republic of China (PRC). Her statement reads in full:
“I welcome the European Union’s decision Friday to impose anti-subsidy duties on imports of battery electric vehicles from the PRC. This is an important first step towards defending the interests of European industry and its workers, and demonstrates the need to confront the PRC’s non-market policies and practices. We know more work needs to be done and look forward to continuing engagement on these critical issues with the European Union, and other market economies, to promote our collective economic security and prosperity for our market-oriented industries and workers.”
As we warned in our “On a Collision Course” report released earlier this year, the introduction of artificially cheap automobiles from China could prove to be an “extinction-level event” for the U.S. auto industry. Chinese autos are backed by massive subsidies from China’s government and benefit from a whole host of unfair labor practices, including the alleged use of forced labor.
Now China is flooding the global market with these autos. While tariffs on Chinese-made vehicles have mostly kept Chinese autos from breeching U.S. shores, these vehicles are overwhelming other nations around the world, including in Europe.
Automobiles aren’t the only sector effected by China’s continued industrial overcapacity, of course. As the USTR noted on Tuesday, the U.S. and EU are collaborating to combat Chinese unfair trade practices in a number of additional sectors, including steel, aluminum, aircraft, and more.