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United States Senator proposes barring Chinese companies utilizing 3rd countries to evade tariffs

Republican U.S. Senator Marco Rubio on Thursday proposed barring Chinese producers from averting tariffs by setting up factories in other nations like Mexico, Vietnam or Malaysia.

Rubio implicated Chinese makers of shifting production to other countries that face lower U.S. tariffs, saying it permitted them to evade tariffs and flood the U.S. market with inexpensive items. A House committee raised concerns recently about a Chinese car parts company that may have sought to avert tariffs.

Rubio in March had proposed legislation to extend greater tariffs to automobiles produced by Chinese automakers in other countries like Mexico.

Biden administration officials have also raised concerns about Chinese business seeking to set up factories to prevent tariffs. A U.S. production advocacy group in February cautioned imports from Mexico of vehicles made by Chinese automakers could. end up being an extinction-level occasion for the U.S. auto. sector.

The Chinese Embassy in Washington did not right away. react to a request for comment.

Last week, the U.S. Trade Representative's workplace. locked in high tariff hikes on Chinese imports, consisting of a. 100% duty on electrical vehicles, to improve securities for. tactical markets from China's state-driven industrial. practices.

The action, which marks completion of a more than two-year. review of tariffs that had been imposed by former President. Donald Trump, mostly left the same the top-line responsibility boosts. revealed in May by President Joe Biden.

The Biden administration likewise left in location Trump's tariffs. on over $300 billion worth of Chinese products ranging from toys. and tee shirts to internet routers and industrial machinery at. rates of 7.5% to 25%.

The U.S. and Mexico in July announced brand-new steps to combat the. circumvention of U.S. tariffs on steel and aluminum by China and. other nations that ship products through Mexico, executing. a North American melted and put standard for steel.

(source: Reuters)