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White House Threatens 40% Tariffs on Chinese Cars

The Trump administration is looking at options to match its import tariffs on cars from China to the 40% rate levied by China on vehicles from the U.S.
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The Trump administration is looking at options to match its import tariffs on cars from China to the 40% rate levied by China on vehicles from the U.S.

Trade Representative Robert Lighthizer says he has been directed by President Donald Trump to review “all available tools” to equalize the automotive tariffs.

China imposes a 40% import tax on cars from the U.S. and 15% on cars from other countries. The U.S. levies a tariff of 27.5% on cars from China and 2.5% on cars from everywhere else.

Last year the U.S. shipped roughly 250,000 cars to China and imported about 50,000 from China.

President Donald Trump complains that China’s industrial policies are causing “severe harm” to U.S. workers and manufacturers. But Lighthizer says China has not offered any proposals for meaningful reform, which would clear the way to reduce tariffs on both sides.

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