Chrysler, General Motors: US files complaint over China tariffs | CarAdvice

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Chrysler, General Motors: US files complaint over China tariffs

By David Zalstein |
FIND DEALS

The United States has filed an official complaint to the World Trade Organisation (WTO) about the level of import tariffs on US-made cars exported to China, the world’s biggest car market.

According to a White House statement regarding the WTO complaint, about 80 per cent of US vehicle exports to China will attract the import tariffs. Exports valued at about $US3 billion ($2.9 billion) a year.

The duties, that will primarily affect vehicles made by Chrysler and General Motors, could potentially see the price of a luxury car increase by as much as 21.5 per cent, a rise that US President Barack Obama views as unfair.

“Americans aren’t afraid to compete; we believe in competition. As long as we’re competing on a fair playing field, instead of an unfair playing field, we’ll do just fine,” President Obama said.

President Obama made the comments at the start of a two-day campaign tour of the US car-making states Ohio and Michigan, ahead of November’s US presidential elections.

Bloomberg reports that the Chinese commerce ministry said in a statement that China will “appropriately” deal with the latest complaint according to the WTO’s dispute settlement procedures.

America’s complaint against China signals the start of WTO dispute proceedings, meaning both governments must now hold talks for a minimum of two months in an effort to resolve the dispute. Reports suggest that if the talks fail to satisfactorily resolve the dispute, the US government may ask WTO judges to make a ruling.

Read our story on June 2012 US car sales.


 

  • Schn

    “As long as we’re competing on a fair playing field, instead of an unfair playing field, we’ll do just fine.” 
    Couldn’t have said it better. Now, Australia could learn a thing or two about competitive pricing and complaining to the WTO. 

  • Kampfer

    Americans talk about fairness?! What a joke…

    • Smart US

       fair is – whatever suits USA… who cares about the rest of the world

  • Jerome S

    Luxury car makers need to get onto Australia about our crazy tariffs. 

  • Jordan

    Their talking about unfairness? Wait until they see Australia..

  • Rightindicators

    US in the FTA with Australia wouldn’t allow Australian sugarcane growers to export to their country. Its not about fairness at all. Its self-interested fairness and protecting their local / domestic industry. Its a joke…

  • Rightindicators

    US in the FTA with Australia wouldn’t allow Australian sugarcane growers to export to their country. Its not about fairness at all. Its self-interested fairness and protecting their local / domestic industry. Its a joke…

  • Rocket

    Car companies like GM were dumb to invest billions in China to make cars there and now they have learnt the art they will protect their own industry like any good communist country would. Chinese car companies will keep adopting (copy) engineering from the like of GM and VW and then eventually kick them out of the largest car market as a the trade war escalates.

    • http://pulse.yahoo.com/_YQLKLFNYP3UFBFAGOV2LNDSREA Robert Ryan

       Seem people from the US forget about the “Chicken Tax” a 25 % surcharge on Pickups built outside NAFTA

  • Vins

    Time to have a taste of their own medicine

  • PIZZA

    I went through a few article about this…i agree China should put a heavy tax on car’s equip with big capacity engines to disencourage their people to buy it …if all the Chinese live like Amercian…there wont be any petrol left when i pick up my 86 next year~

    • Smart US

       thats the whole idea… and then we drive Hydrogen cars

  • MisterZed

    Why should America complain when they don’t import a single vehicle from China themselves?  Hardly a “fair” playing field – they expect to export vehicles to China yet don’t import any from there themselves!

    • Silver Streak

      BINGO.

  • JamesB

    At least Americans fight for their rights unlike the pushovers downunder. Setting up a mobile speed camera there is like suicide.

    • Dave S

      Too many stories like this. I remember the one about Ford wanting to export the Territory to Thailand. Ford Australia, get their Thai made cars – free trade, The Territory would get 60% import tax (because it was over 3.0 litres) if exported to Thailand. Not really what you would call ‘Free trade’ 

  • Andrew M

    With the whole trade war issue, why dont we get even instead of complaining??

    We get a heck of a lot of vehicles from Thailand, so why dont we also put on a 60% tariff on their vehicles??

    The asian countries are the worst at trade agreements and not holding agreements, yet why does that mean we have to hold our word?

    Ford and GM are actually setting up in china to get around their protection, They (china) still kind of win either way