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U.S. explores tools to raise tariffs on Chinese auto imports
Reuters | 2018/11/30

WASHINGTON -- U.S. Trade Representative Robert Lighthizer said on Wednesday that he was examining all available tools to raise U.S. tariffs on Chinese vehicles to the 40 percent duties that China is now charging on U.S.-produced cars and light trucks.

Lighthizer said in a statement criticizing China's "egregious" tariffs on U.S.-made vehicles that he was taking such action at the direction of President Donald Trump.

The statement came just days before Trump is due to meet Chinese President Xi Jinping in Buenos Aires in a showdown that could ease or worsen the trade war between the world's two largest economies.

Automotive duties on both sides have been increased by tit-for-tat tariffs. The United States imposed a 25 percent tariff on Chinese vehicles on top of the 2.5 percent it normally charges. China had lowered tariffs for all other countries to 15 percent, but imposed an additional 25 percent retaliatory tariff on U.S. vehicles.

The U.S. and China, looking to defuse tensions and boost markets, are also exploring a trade deal in which Washington would hold off on additional tariffs through the spring in exchange for new talks aimed at major changes in Chinese economic policy, The Wall Street Journal reported Thursday.

The Trump administration is seeking sweeping changes to China's state-driven economic policies, including new protections for U.S. intellectual property, an end to joint-venture requirements, more access for U.S. firms to China's vast market and cuts in China's industrial subsidies.


"As the President has repeatedly noted, Chinas 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."


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