Major carmakers sue US govt over tariffs on Chinese imports

NEW YORK • Major carmakers Tesla, Volvo, Ford and Mercedes-Benz have sued the US government over tariffs on Chinese goods, demanding customs duties paid on imports be returned, with interest.

The lawsuits, which were filed in recent days in the New York-based Court of International Trade, concern tariffs imposed by the Office of the US 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 carmakers are asking for the tariffs to be revoked and any money paid to import parts returned.

Mercedes-Benz in its filing accused Washington of "prosecution of an unprecedented, unbounded, and unlimited trade war impacting over US$500 billion (S$688 billion) in imports from the People's Republic of China".

The German carmaker argued that US law "did not confer authority on defendants to litigate a vast trade war for however long, and by whatever means they choose".

Officials at the office of United States Trade Representative Robert Lighthizer did not respond when contacted by AFP for comments on the lawsuits.

US President Donald Trump's administration engaged in months of trade conflicts with China, and imposed the levies as part of an effort to wean US manufacturers off Chinese technology.

China and the US signed their "phase one" trade deal earlier this year that partially ended the dispute. Under that agreement, Beijing promised to buy US$200 billion in US goods and Washington backed down on tariffs on US$160 billion in Chinese goods, particularly consumer electronics.

The US also slashed by half 15 per cent tariffs on US$120 billion in goods, but kept in place 25 per cent duties on US$250 billion in imports, which some of the carmakers 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 US trade deficit in July surged nearly 11 per cent to US$63.6 billion, with the deficit with China climbing to US$28.3 billion.

China is the world's biggest car market and the main growth driver for many car manufacturers - especially for electric car maker Tesla.

AGENCE FRANCE-PRESSE

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A version of this article appeared in the print edition of The Straits Times on September 25, 2020, with the headline Major carmakers sue US govt over tariffs on Chinese imports. Subscribe