Obama Widens China Trade Fight in Auto Levy Complaint

Obama Widens China Trade Fight in Auto Levy Complaint

July 6, 2012

Obama Widens China Trade Fight in Auto Levy Complaint. President Barack Obama expanded U.S. trade complaints against China, accusing the nation of imposing unfair taxes on American vehicles, mostly from General Motors Co . (GM) and Obama Says WTO Action to Hold China `Accountable’
By Jennifer M. Freedman and William McQuillen


President Barack Obama speaks about a claim that his administration filed with the World Trade Organization against China, charging it with unfair tariffs on U.S. autos. Obama, speaking in Maumee, Ohio, at the start of a two-day campaign bus tour, also talks about last week’s decision by the U.S. Supreme Court to uphold the health-care law.

frankartculinary / Foter

Duties on more than $3 billion in exports cover more than 80 percent of U.S. auto shipments, including Jeep’s Wrangler and Grand Cherokee, both made by Chrysler, and GM’s Buick Enclave and Cadillac CTS, according to a White House statement on a complaint it filed yesterday at the World Trade Organization.

“Americans aren’t afraid to compete; we believe in competition,” President Barack Obama said in Maumee, Ohio, near a Jeep factory at the start of a two-day campaign bus tour yesterday. “As long as we’re competing on a fair playing field, instead of an unfair playing field, we’ll do just fine.”

The U.S. complaint adds to an expanding list of grievances between the nations. Disputes over issues such as rare-earth minerals, solar panels and wind turbines by China and the U.S. in recent months have led some analysts to speculate the nations are headed for a trade war. The U.S. has complained about lack of access in China for products including poultry, tires and music.

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UP DATE: Currently, the only Cadillac built in China is the SLS long-wheelbase rear-wheel-drive sedan, whereas the CTS and Escalade are imported from the United States, and the SRX from Mexico. This imbalance is set to change in the near future, according to words by Joel Ewanick, GM’s chief marketing officer. The CTS was built in China in 2006 only. When it resumed being built in the united States.

General Motors plans to build the XTS in China and, GM plans to build the ATS and CTS in China as well. In addition to the appeal, building Cadillacs in China helps GM get around the pricey tariffs that China slaps on imported cars. We ask why Obama has waited so to complain to the WTO. By time the case is heard the jobs will be lost in the United States and the GM factories built in China.

But will these Chinese plants begin exporting Cadillacs to Europe and beyond? At the cost of American jobs.


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