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Automakers Sue US Government Over Tariffs on Chinese Imports

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Automakers Sue US Government Over Tariffs on Chinese Imports

NEW YORK – Automakers Tesla, Volvo, Ford and Mercedes-Benz have sued the U.S. government over tariffs on Chinese goods, demanding customs duties paid on imports be returned, with interest.The lawsuits were filed over the past days in the New York-based Court of International Trade and concern tariffs imposed by the U.S. Trade Representative on imports from China, which Tesla in its filing called “arbitrary, capricious, and an abuse of discretion.”The duties came amid a wider trade dispute between Washington and Beijing, and the automakers are asking for the tariffs to be revoked and any money paid to import parts returned.Mercedes in its filing accused Washington of “prosecution of an unprecedented, unbounded and unlimited trade war impacting over $500 billion in imports from the People’s Republic of China,” and argued U.S. law “did not confer authority on defendants to litigate a vast trade war for however long, and by whatever means, they choose.”U.S. President Donald Trump’s administration engaged in months of trade conflicts with China and imposed the levies as part of an effort to wean American manufacturers off Chinese technology.China and the U.S. signed their “phase one” trade deal earlier this year that partially ended the dispute, under which China promised to buy $200 billion in U.S. goods and Washington backed down on tariffs on $160 billion in Chinese goods, particularly consumer electronics.The U.S. also slashed by half 15% tariffs on $120 billion in goods but kept in place 25% duties on $250 billion in imports, which some of the automakers cited in their lawsuits.Beijing has retaliated for these levies, while Washington is aiming both to reduce its trade deficit and reform Chinese business practices it considers “unfair.”The Commerce Department reported the U.S. trade deficit in July surged nearly 11% to $63.6 billion, with the deficit with China climbing to $28.3 billion.

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China

Government subsidies don’t boost Chinese firms’ productivity

China’s industrial subsidies have caused considerable controversy both internationally and domestically. Trading partners have accused China of unfairly favouring its indigenous firms with subsidies, leaving foreign companies at a disadvantage in the race to lead the technologies of the future.

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East Asia Forum

Governments around the world regularly spend an enormous amount of money subsidising businesses. But few spend like China. A 2022 report suggests that China spends 1.7–5 per cent of its GDP on industrial policies, more than most countries.

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Companies

Chinese Smartphone Manufacturer Lays Off 3,000 Employees Following Closure of Chip Design Division

OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).

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OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).

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Companies

Company Owned by Chinese Billionaire Guilty of Paying $1 Million in Bribes to LA Councilman

A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.

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A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.

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