Rubio Introduces Bills to Prevent China From Flooding U.S. Auto Markets
Communist China has become the world’s largest exporter of automobiles through massive state subsidies, forced labor, intellectual property theft, and other subversive policies. Chinese automakers are taking advantage of multiple loopholes in existing U.S. trade law and have been establishing new production supply chains in Mexico, which will allow the Chinese Communist Party to evade tariffs and flood the U.S. market with artificially cheap vehicles.
U.S. Senator Marco Rubio (R-FL) introduced three bills to protect the American auto industry.
- “America’s existing tariffs, once effective, are now insufficient to counter China’s newest strategies. But raising tariffs alone is not enough. We need a multi-pronged effort to prevent the Chinese Communist Party from entering the American auto market before it is too late. My legislation would safeguard American automakers and workers against the influx of artificially cheap vehicles from China.” – Senator Rubio
Closing Auto Tariffs Loopholes Act. This legislation would treat motor vehicles produced by a foreign adversary and its controlled entities as if they originated in the territory of the foreign adversary.
Strengthening Tariffs on Chinese Autos Act. This legislation would impose a new tariff of $20,000 on all Chinese vehicles imported into the U.S. This flat tariff is vital because it would 1) address the disproportionate advantage of lower-end Chinese autos, 2) not be at the mercy of what an importer claims they paid, and 3) close the “assists” loophole, which currently allows Chinese companies to subtract the cost of many inputs from the value of existing, percentage-based tariffs.
American Subsidies for American Autos Act. Currently, only one of the U.S.’s programs that incentivize the use of electric vehicles requires that final assembly occur in North America. This legislation would require vehicles to comply with the United States-Mexico-Canada Agreement’s (USMCA) rules-of-origin and labor value content criteria to qualify for any federal electric vehicle program. The USMCA rules are far more protective of American jobs than the current rules from the Inflation Reduction Act.
