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Loophole in US Tariffs on Chinese EVs Allows Flood of Golf Cart Imports

2024-06-29 23:53:42.812000
[num] Fortune

Club Car LLC and Specialized Vehicles Inc., the two largest golf cart producers in the US, have asked the Biden administration to impose a 100% tariff on golf carts and other low-speed, battery-powered personal vehicles made in China. The Chinese carts are currently imported under a product classification that has a lower tariff than regular Chinese electric automobiles. As a result, Chinese golf cart imports have increased sixfold since 2020. The American companies argue that the Chinese carts are able to avoid the proposed increased duties on electric vehicles announced by the Biden administration in May. The filing from Club Car and Textron, which makes E-Z-GO and Cushman carts, states that imports of Chinese golf carts and similar products totaled $916 million last year, up from $148 million in 2020. The companies claim that their Chinese competitors have undersold domestically produced vehicles, resulting in a decline in the US industry's production, capacity utilization, shipments, employment, and financial performance in 2024. The companies have also filed a related case with the US Commerce Department and the US International Trade Commission, alleging dumping of Chinese golf carts and seeking relief in the form of anti-dumping and countervailing duties. [84fdd6d0]

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