Makers of golf carts and similar vehicles won a preliminary trade victory Friday as the International Trade Commission found “a reasonable indication” that Chinese imports are damaging U.S. manufacturers.
The commission was responding to a June petition by Club Car and Textron Specialized Vehicles Inc., both based in Augusta. A third golf cart maker, Yamaha, based in Japan with local headquarters in Newnan, was not part of the filing.
More than 3,000 Georgians work for the three companies, which represent the lion’s share of American production of golf carts.
“Today’s finding is an important step in protecting the careers of thousands of people who design, build, sell and service the high-quality, safe and reliable American-made vehicles that our industry produces,” said Rob Scholl, chief executive of Textron Specialized Vehicles, in a statement.
More than 400,000 golf carts are sold in the United States each year. But the filing and the ITC ruling includes golf carts, low speed vehicles, personal transportation vehicles and lightweight utility vehicles, said Robert DeFrancesco, the attorney for the two companies that filed a request for a 100% tariff on the imports compared with the 7.5% paid now.
“Today’s vote takes the domestic industry one step closer to restoring a level playing field,” he said.
U.S. consumers would not directly pay the tariffs, but economists say they effectively bear the burden of those taxes. The tariff would be paid by the companies as the imports enter the United States, so whatever portion of the tariffs is included in the price of the products becomes part of the price consumers would pay.
The U.S. Department of Commerce has begun an investigation into imports, focusing on at least 48 Chinese programs that might be seen as providing subsidies, tax breaks and discounted materials that could give the imports an unfair advantage over companies competing in the market.
A decision is expected later this year. If both Commerce and the ITC find that the imports are getting unfair help, they can impose the hefty tariffs for five years or more.
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