March 14, 2006: Congressman Ryan Cosponsors Bill to Curb Unfair Chinese Tariffs on American-Made Cars
(WASHINGTON, D.C.) Congressman Tim Ryan announced today that he has cosponsored H.R. 4808 The Unfair Chinese Automotive Tariff Equalization Act. The bipartisan legislation introduced by Reps. Walter Jones (R-NC) and Dale Kildee (D-MI) would prevent imports of passenger cars from China until the U.S. and Chinese tariffs on these items are equal. Currently, China imposes a 28 percent tariff on American-made cars while the U.S. imposes only a 2.5 percent tariff on Chinese-made cars.
"This legislation is an important step towards fixing the uneven playing field on which China and America compete economically," said Congressman Ryan. "The Chinese government levies tariffs on our cars that are 11 times higher than tariffs we impose on their cars. It makes no sense to allow this to continue. Inaction by Congress could put at risk thousands of jobs in the U.S. automotive industry."
The need for this legislation has been augmented by the plans of two Chinese manufacturers Chery and Geely to export low-priced, Chinese-made cars to the U.S. as soon as next year with the goal of selling 250,000 cars annually in the U.S. market. As the U.S. auto market has become increasingly competitive through globalization, it has become even more important that the U.S. holds our trading partners accountable to fair trade practices.
"Unreasonably high tariffs on American-made cars is just one of many unfair advantages the Chinese government affords itself at the expense of American workers," added Congressman Ryan. "China already manipulates their currency, violates intellectual property rights, pays their workforce pennies a day and lacks adequate labor and environmental standards that American companies must abide by."
H.R. 4808 does not require U.S. tariffs on passenger cars to be raised or Chinese tariffs to be lowered. Instead, the legislation states that until tariff rates are equal, no Chinese-made cars may be imported into America.
Congressman Tim Ryan is a leading advocate of American Manufacturing in the U.S. House of Representatives. He is the main sponsor of the Chinese Currency Act, which would stop China's illegal currency manipulation and has 157 bipartisan cosponsors. Ryan also co-chairs the Congressional Manufacturing Caucus.