Lighthizer Lashes Out at China’s Tariff on U.S. Automobiles

U.S. Trade Representative Robert Lighthizer lashed out at China’s 40% tariff on U.S. automobiles and threatened to raise the U.S. tariff on Chinese cars to an equivalent level on Wednesday, reports Jim Wiesemeyer of Pro Farmer.

Lighthizer also expressed concern that China has not made any “meaningful” offers to address broader U.S. trade issues.

“As the president has repeatedly noted, China’s aggressive, state-directed industrial policies are causing severe harm to U.S. workers and manufacturers,” Lighthizer said. “We are continuing to raise these issues with China. As of yet, China has not come to the table with proposals for meaningful reform.”

The challenges started earlier this year when China lowered its tariffs on automobiles to 15% from 25% previously, Wiesemeyer said. However, China later raised the rate on U.S. autos to 40% as the trade war escalated in response to Trump raising the tariff on Chinese autos from 2.5% to 27.5%.

According to the commerce ministry, China is hoping for positive results in resolving a trade dispute with the U.S. at the Group of 20 summit.

Wiesemeyer said Lighthizer frequently uses aggressive trade strategy to get another country’s trade officials to the bargaining table and to confront some key initiatives the U.S. desires. This was the tactic Lighthizer used throughout the process that eventually resulted in the new U.S.-Canada-Mexico (USMCA) trade agreement designed to replace the North American Free Trade Agreement (NAFTA).

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Lighthizer Lashes Out at China’s Tariff on U.S. Automobiles

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