The Obama Administration has filed a complaint with the World Trade Commission over China’s hefty new duties on American-made cars.
The import tariffs cover about 80% of the vehicles shipped from the U.S. to China – including products assembled at foreign-owned plants such as the Mercedes-Benz factory in Alabama – and could cost manufacturers as much as $3.3 billion. The tariffs are also expected to force makers like General Motors to shift more production from the U.S. to China.
“China must play by the global rules of the trading system,” said a White House statement.
It’s the latest salvo in an increasingly nasty trade war that saw the U.S. impose major new tariffs on Chinese-made tires that were allegedly being dumped – or sold at a price lower than the cost of production. The WTC has upheld the tire duties, much to the anger of Chinese officials.