U.S. Files Trade Complaint Against China’s Auto Tariffs

The Obama administration has filed a complaint with the World Trade Organization that accuses China of imposing unfair duties on autos imported from the U.S.

In December, Beijing announced anti-dumping duties of as much as 8.9% on American-made cars and SUVs with engines that displace 2.5 liters or more. The tariffs affect BMW, Chrysler, Daimler, General Motors and Honda. China levied additional duties of as much as 12.9% on GM vehicles and 8.8% on Chrysler vehicles, contending that U.S. bailouts of the two carmakers in 2009 amounted to illegal government subsidies.

The new tariffs affect $3.3 billion of U.S.-made vehicles, or 92,000 units, per year, according to the White House. It claims the auto tariffs are retaliation for America's 35% duties on Chinese tires.

The U.S. and China have 60 days to resolve the dispute through negotiations, after which the U.S. can request a hearing by a WTO dispute panel. China says it will deal "appropriately" with the trade action.

The U.S. has already filed WTO complaints against China involving poultry, rare earth minerals, solar panels, steel and wind turbines. The U.S. won a favorable ruling in the steel case from a dispute panel last month.

Labor unions, trade activists and some lawmakers are urging the White House to bring trade cases against China for its alleged dumping of auto parts in the American market.