Saturday, July 7, 2012

US large-engined vehicle exports to China will attract import tariffs




The United States has complained to the World Trade Organization about the level of China's import duties on large-engined US-made cars. Washington thinks the tariffs, which could add as much as 21.5% to the price of a luxury car, are unfair. The WTO, based in Geneva, said it had received formal notification of the complaint on Thursday.


The duties will primarily affect US manufacturers Chrysler and General Motors, potentially adding 15% to the cost of a Chrysler Jeep Grand Cherokee or 21.5% to the cost of General Motors' Cadillac CTS, for example.

Taken together, the duties are 15% on the Jeep Grand Cherokee made in Detroit and 22% on the Buick Enclave and Cadillac CTS produced in the Lansing area.

For all U.S. automakers, anti-dumping duties range from 2% to 8.9% while countervailing duties -- intended to reduce the impact of subsidies -- range from 6.2% to 12.9%.

The automakers, however, were largely silent on the administration's request for consultations at the World Trade Organization.

US vehicle exports to China, valued at $3bn (£1.94bn) a year, will attract the import tariffs. The US complaint coincided with President Barack Obama's campaigning visits to the carmaking states of Ohio and Michigan, in advance of November's presidential elections.

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