Federal officials on Tuesday said they will impose duties on imported Chinese golf carts they believe received unfair subsidies that undercut U.S. competitors, including two Georgia-based companies.
While a final judgment is not expected until June, the U.S. Department of Commerce said that, starting within a few weeks, penalties of 22% to 515% will be imposed on the products when they arrive at U.S. ports.
Trade officials can impose those duties even after a preliminary decision to protect domestic industries from being unfairly undercut while the investigation continues. If, in the end, it is decided that the foreign companies were not being unfairly subsidized, the money can be returned.
The request for government help came from members of the American Personal Transportation Vehicle Manufacturers Coalition, which includes Club Car and Textron Specialized Vehicles, both based near Augusta.
“We’re glad to see the U.S. Department of Commerce take a stand for American manufacturers and workers,” said Mark Wagner, chief executive of Club Car, in a statement. “The decision today is a first step in the right direction to restore a fair marketplace.”
Club Car and Textron say they account for more than half the roughly 407,000 golf carts that are sold each year in the United States. Club Car has three facilities in Georgia, while Textron Specialized Vehicles has two locations.
In total, more than 3,000 Georgians work for the companies making golf carts.
President-elect Donald Trump said this week in an online post that when he takes office, he intends to impose tariffs of 25% on goods coming from Mexico and Canada. He said he would impose tariffs of 10% on goods from China.
During Trump’s first term, his administration imposed tariffs on thousands of products valued at approximately $380 billion in 2018 and 2019, according to the nonpartisan Tax Foundation.
The Biden administration kept most of those tariffs in place. In May, the Biden administration announced tariff hikes on Chinese semiconductors and electric vehicles.
However, the actions announced by the Biden Commerce Department on Tuesday were penalties for what officials said were unfair subsidies.
“We are pleased that the U.S. Department of Commerce has recognized and taken decisive action against the unfair trade practices of the state-supported Chinese (golf cart) industry,” said Rob Scholl, CEO of Textron Specialized Vehicles, in a statement. “Today’s determination will help to … protect the U.S. industry and its employees from the unfair advantages that state-subsidized Chinese companies enjoy.”
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