The greatest demand for action against Chinese manufacturers by a U.S. senator to date was made on Thursday by the leader of the Senate Banking Committee, who asked President Joe Biden to exclude Chinese-manufactured cars from the American auto market. Biden received a letter from Democratic Senator Sherrod Brown on Thursday urging “expeditious” action.
“I implore you to take bold, aggressive action and to permanently ban EVs produced by Chinese companies or whatever subsidiaries they establish to conceal their origins. Chinese electric vehicles are an existential threat to the American auto industry.”
Biden stated in March that he would “not let that happen on my watch” and that China’s actions “could flood our market with its vehicles, posing risks to our national security.” It is the strongest position taken on the subject by a US senator to yet, with Brown advocating for a permanent ban on Chinese electric vehicles from the American market. EVs should not enter the US, according to others who have asked for high tariffs.
To reduce threats to national security, Brown, along with Senators Gary Peters and Debbie Stabenow of Michigan, all hailing from auto-producing states, urged Biden to significantly increase import duties on Chinese electric vehicles (EVs) last month. Lawmakers and activists have also expressed concern that Chinese manufacturers may construct inexpensive cars in Mexico to be eligible for EV tax incentives in the United States.
Rising Tensions: Biden Administration Considers Increased Tariffs on Chinese Electric Vehicles Amid National Security Concerns
Biden is thinking of raising duties on Chinese electric vehicles, auto industry executives told Reuters in February. The letter is the most recent example of the mounting pressure on the White House to take more action to stop the import of Chinese automobiles. Due to worries that “connected” automobile technology may compromise American data, the Commerce Department launched an inquiry in March to determine if Chinese vehicle imports constitute a danger to national security and whether limits should be placed on them.
Gina Raimondo, the commerce secretary, told Reuters last month:
“We are going as fast we can to identify the risks and take any actions we think are national security concerns. If China is subsidizing the vehicles in a way that puts American workers at a disadvantage we have to do something about that.”
Even though there aren’t many Chinese cars imported into the US, two Republican senators have also put forth legislation to increase duties on cars built in China. Although it has previously opposed proposals to raise tariffs, the Chinese embassy in Washington said that China’s vehicle exports “reflect the high-quality development and strong innovation of China’s manufacturing industry.” The embassy did not immediately respond to requests for comment on Thursday. In November, a coalition of legislators from both parties pushed U.S. Trade Representative Katherine Tai to increase duties on Chinese automobiles.
The Road Ahead
Two Republican senators have also put out legislation to increase duties on automobiles produced in China, while the debate continues. The stakes are considerable even though there are now very few Chinese automobiles entering the US. The fate of Chinese electric vehicles is at stake as the battle lines are drawn.
The issue that has to be answered while the auto sector waits is whether President Biden will grab the reins and work toward a permanent ban to protect American employment and security. While time will tell, Senator Brown’s request is clear: action is required now because Chinese electric vehicles pose an existential danger.
