Electric golf cart tariff seismic surge:

In addition to the Biden administration has announced that in addition to raising tariffs on electric vehicles by four times, the United States has also imposed higher tax rates on upstream and downstream industries related to electric vehicles, such as steel, aluminum and lithium batteries. Specifically, after the tariffs on lithium batteries and their components for electric vehicles were increased from 7.5% to 25%, the tariffs on steel and aluminum were increased from 0-7.5% to 25%, and the tariffs on power batteries and their materials were also increased from 7.5% to 25%, citing the so-called “large influx of Chinese imports”. America’s two biggest makers of golf carts are also urging the administration to raise taxes on China.

Electric golf cart, sightseeing car, three-wheeled electric vehicle Import and export Customs Code:

According to the preliminary investigation report released on June 20, the “double counterinvestigation” was made on the grounds that the U.S. industry was “threatened with significant damage” and was requested by the “American Personal Transportation Manufacturers Alliance.” Involving US Customs code 8703.10.50, 8703.90.01, 8706.00.15 and 8707.10.00, including sightseeing vehicles, golf carts, three-wheeled electric vehicles, electric go-kart and other products.

The ITC is expected to issue a preliminary ruling by August 5 at the latest and forward the investigation to the Commerce Department by August 12, the report said. The US Department of Commerce is expected to make a preliminary anti-subsidy ruling on September 13, and a preliminary anti-dumping ruling on November 27.

On June 25 local time, the Wiley law firm in Washington also sent a letter to the Office of the US Trade Representative, claiming that the Chinese competitors of Kaboka and Textron “substantially and systematically bid for sales”, which led to the deterioration of domestic industry performance in the United States. Production, capacity utilization, shipments, employment and financial performance in 2024 have plummeted, seeking relief in the form of anti-dumping and countervailing duties while accusing Chinese golf carts of “dumping.”

Tariff increases have a seismic impact on U.S. demand for electric golf carts:

Previous analysis by the Associated Press and Reuters pointed out that Biden adopted the same tax increase on China as his predecessor Trump before the election, which obviously violated the free trade consensus that the United States had long promoted, and wanted to tell voters that “they are all taking a tough attitude toward China.” But at a time of heightened tensions between the world’s two largest economies, the measures risk provoking a backlash from China that could spark a broader trade conflict.

In response to the US decision to impose tariffs on China, a spokesperson for the Chinese Embassy in the United States said that the Chinese government will “take all necessary measures to defend its rights and interests” and that raising tariffs “will not only disrupt the normal economic and trade cooperation between China and the United States, but also significantly push up the cost of imported goods, bring more losses to US companies and consumers, and make US consumers pay more costs.”

The spokesperson of the Chinese Foreign Ministry also pointed out recently that the US side continues to politicize economic and trade issues and further increase tariffs on China is a mistake, which will only significantly push up the cost of imported goods, make US companies and consumers bear more losses, and make US consumers pay a greater price. According to Moody’s estimates, US consumers bear 92% of the cost of the tariffs on China, with US households spending an additional $1,300 a year, and the US protectionist measures will also cause greater damage to the security and stability of the global production and supply chain.

Electric golf cart, sightseeing car, three-wheeled electric vehicle Import and export Customs Code:
According to the preliminary investigation report released on June 20, the “double counterinvestigation” was made on the grounds that the U.S. industry was “threatened with significant damage” and was requested by the “American Personal Transportation Manufacturers Alliance.” Involving US Customs code 8703.10.50, 8703.90.01, 8706.00.15 and 8707.10.00, including sightseeing vehicles, golf carts, three-wheeled electric vehicles, electric go-kart and other products.