Senate Democrats call on Biden administration to increase tariffs on Chinese EVs

Chinese EVs tariffs: Three Senate Democrats from states with major auto manufacturing industries have urged the Biden administration to raise import tariffs on Chinese electric vehicles (EVs) to address national security concerns. 

Senators Gary Peters and Debbie Stabenow of Michigan, along with Sherrod Brown of Ohio, stressed the risks associated with allowing heavily subsidised Chinese vehicles to flood the US marketplace.

In their letter, first reported by Reuters, the senators warned that artificially low-priced Chinese EVs could cost thousands of American jobs and threaten the survival of the US automotive industry. 

The move comes amid growing pressure on the White House to take decisive action to prevent Chinese vehicle imports.

The letter addressed to Commerce Secretary Gina Raimondo and US Trade Representative Katherine Tai urged for additional measures to counter the economic and national security threat posed by China's efforts to penetrate the US market. 

Specifically, the senators highlighted the danger of potential imports of highly connected Chinese vehicles and high-risk China-controlled connected and autonomous technologies.

Raimondo expressed the administration's deep concern over the issue, stating that they are working swiftly to identify risks and take necessary actions to address national security concerns. 

She noted that US auto executives had raised concerns about Chinese subsidies last year.

Recently, the Commerce Department initiated an investigation into whether Chinese vehicle imports pose national security risks, particularly due to concerns about "connected" car technology. Raimondo reiterated the urgency of addressing the issue if China's subsidies put American workers at a disadvantage.

President Biden has also underscored the importance of preventing Chinese vehicles from flooding the US market, stressing that he will not allow it to happen during his presidency. 

However, the Chinese embassy in Washington has rejected calls to increase tariffs, highlighting the high-quality development and strong innovation of China's manufacturing industry.

In November, a bipartisan group of lawmakers urged US Trade Representative Tai to raise tariffs on Chinese vehicles. 

Tai mentioned in January that the Biden administration is closely reviewing China's non-market policies and practices in its automotive industry, as well as reviewing current tariff levels.

(With Reuters Inputs)