Trump administration to examine tools to raise US tariffs on Chinese vehicles

New BMW cars lined up at a factory in Shenyang in China's north-eastern Liaoning province on Oct 11, 2018.
New BMW cars lined up at a factory in Shenyang in China's north-eastern Liaoning province on Oct 11, 2018.PHOTO: AFP

WASHINGTON (REUTERS) - United States Trade Representative Robert Lighthizer said on Wednesday (Nov 28) that he was examining all available tools to raise US tariffs on Chinese vehicles to the 40 per cent duties that China is now charging on US-produced vehicles.

Mr Lighthizer said in a statement that he was taking such action at the direction of President Donald Trump.

Vehicle tariffs on both sides have been increased amid a worsening trade war between the US and China.

The US imposed a 25 per cent tariff on Chinese vehicles on top of the 2.5 per cent it normally charges.

China had lowered tariffs for all other countries to 15 per cent, but imposed an additional 25 per cent retaliatory tariff on US vehicles.