Friday, December 16, 2011

U.S. ‘Very Disappointed’ By China’s New Auto Import Tariffs -- Is a trade war looming?

U.S. trade officials are “very disappointed” in China’s decision to impose new import tariffs on several U.S. auto manufacturers, including Ford, GM and Chrysler, a spokesperson for the U.S. Trade representative wrote in a statement on Wednesday.

The pointed response comes after the Chinese trade ministry announced the new duties, adding a new trade dispute to the growing friction between the world’s largest economy and the world’s most populous nation.

China accuses the U.S. of unfairly subsidizing it own automakers, as well as foreign companies with U.S.-based production facilities — a policy that inflicts “substantial damage to China’s domestic industry,” according to a trade ministry statement cited by Reuters.

“We are very disappointed in this action by China,” U.S.T.R spokesperson Carol J. Guthrie said in a statement. “We will be discussing this latest action with both our stakeholders and Congress to determine the best course going forward.” Read More