WASHINGTON, March 7 (Reuters) - Three Senate Democrats
from auto manufacturing states on Thursday urged the Biden
administration to hike import tariffs on Chinese electric
vehicles to address national security risks, the latest push by
lawmakers to protect the U.S. auto sector.
"Allowing heavily subsidized Chinese vehicles to enter the
U.S. marketplace would endanger American automotive
manufacturing," said the previously unreported letter, seen by
Reuters, from Senators Gary Peters and Debbie Stabenow of
Michigan and Sherrod Brown of Ohio. "Artificially low-priced
Chinese EVs flooding the U.S. would cost thousands of American
jobs and endanger the survival of the U.S. automotive industry
as a whole."
Auto industry officials told Reuters earlier Biden is
considering hiking tariffs on Chinese EVs and the letter is the
latest in growing pressure on the White House to take further
steps to prevent Chinese vehicle imports.
The letter to Commerce Secretary Gina Raimondo and U.S.
Trade Representative Katherine Tai urged "additional action this
year to combat the economic and national security threat
presented by China's efforts to infiltrate our U.S. market."
USTR and Commerce did not immediately comment.
In recent days, two Republican senators have proposed
legislation seeking to hike tariffs on Chinese-made vehicles,
though relatively few Chinese vehicles are imported into the
United States.
"China's policies could flood our market with its
vehicles, posing risks to our national security," President Joe
Biden said in a statement last week. "I'm not going to let that
happen on my watch."
The Chinese embassy in Washington has rejected calls to hike
tariffs saying China's automobile exports "reflect the
high-quality development and strong innovation of China's
manufacturing industry."
Last week, the Commerce Department said it was opening
an investigation into whether Chinese vehicle imports pose
national security risks and could impose restrictions due to
concerns about "connected" car technology. The White House has
not detailed any specific national security incidents to date
involving Chinese vehicles but says they could be "exploited in
ways that threaten national security."
The senators urged Commerce to "focus its investigation
on the national security threat posed by the potential import of
highly connected Chinese vehicles and high-risk China-controlled
connected and autonomous technologies."
A bipartisan group of lawmakers in November urged U.S.
Trade Representative Tai to boost tariffs on Chinese vehicles.
Tai said in January the Biden administration is closely
reviewing "China's non-market policies and practices in its
automotive industry" and reviewing current tariff levels.