WASHINGTON, Sept 19 (Askume) – U.S. Republican Senator Marco Rubio on Thursday proposed sanctions against Chinese manufacturers who avoid tariffs by setting up factories in other countries such as Mexico, Vietnam or Malaysia.
Rubio accused Chinese manufacturers of shifting production to other countries with lower U.S. tariffs, saying this gave them an opportunity to “evade tariffs and flood the American market with cheap goods.” Last week, a House committee expressed concern about a Chinese auto parts company trying to avoid tariffs .
RubioLegislation was proposed in March to impose high tariffs on cars produced by Chinese automakers in other countries, including Mexico .
Biden administration officials have also expressed concern about efforts by Chinese companies to build factories to avoid tariffs. In February, a U.S. manufacturing advocacy group warned that imports of cars made by Chinese automakers from Mexico could “lead to the destruction of the American auto industry.”
The Chinese Embassy in Washington did not immediately respond to a request for comment.
Last week, the Office of the US Trade Representative decided to significantly increase tariffs on Chinese imports, including a 100% tariff on electric vehicles, to protect strategic industries from China’s state-owned industrial behavior.
The move marks the end of a more than two-year review of tariffs imposed by former President Donald Trump, with little change from the top tariff hike announced by President Joe Biden in May.
The Biden administration has retained tariffs imposed by Trump, ranging from 7.5% to 25%, on more than $300 billion worth of Chinese goods, from toys and T-shirts to internet routers and industrial machinery.
In July, the United States and Mexico announced new measures to target China and other countries to circumvent US tariffs on steel and aluminum products exported through Mexico , and implement North American steel “melt and pour” standards.
