As reported in James earlier this year, U.S. Rep. Rick Allen (R-GA 12) and others from across the Augusta region have been concerned for some time about Chinese subsidies of Personal Transportation Vehicles (PTVs) and Low-Speed Vehicles (LSVs) – mostly golf carts but also including all-terrain type vehicles. With Augusta as the golf cart capital of the world, being home to E-Z Go and Club Car, Allen was joined by U.S. Sen. Raphael Warnock (D-GA), South Carolina Senators Lindsay Graham and Tim Scott, as well as Congressman Joe Wilson (R-SC 2), in expressing their concerns to the U.S. Trade Representative who could include these vehicles in the recommended tariff list.
“Today our country faces a deluge of imported vehicles from China being sold at artificially low prices, allowing heavily subsidized Chinese manufacturers to capture market share at an alarming rate,” said the Augusta-region delegation. “This market capture threatens the viability of the domestic manufacturing base, and we strongly believe that China should not continue to reap the unjustified rewards of unfair trade practices. As you work to define ‘electric vehicle’ in the forthcoming tariff definition, we believe that definition should include small electric utility vehicles for personal use.”
The delegation reiterated their concerns again in November. That letter to the Secretary of Commerce noted that more than $522 million worth of these vehicles were imported from China in 2023, more than double from 2021. The letter to Secretary Raimondo brought on more signers in addition to those from May, Representatives Barry Loudermilk (GA-11), Nancy Mace (SC-01), Michael Guest (MS-03), Trent Kelly (MS-01), and Mike Ezell (MS-04).
Now, more than six months after their first letter, the Department of Commerce has issued a preliminary finding that the delegation had a good reason to be concerned. The announcement makes it – almost – official that American trade policy will impose duties to offset the subsidization from the Chinese government. A final determination will be issued in June of 2025.
“The announcement from the Commerce Department is a win for American manufacturers and workers and sends a clear message that we will not tolerate discriminatory trade practices that harm U.S. producers. I am pleased that Secretary Raimondo heeded our letter and took decisive action to hold China accountable. The LSPTV industry is an important economic driver in the 12th District and we must take every necessary step to ensure a level playing field,” said Allen.
It is undoubtedly good news for American manufacturers of these vehicles. Unfairly cheap Chinese vehicles will no longer be able to undercut American products to the degree they have been and American producers market share can recover.
“We’re glad to see the U.S. Department of Commerce take a stand for American manufacturers and workers. The decision today is a first step in the right direction to restore a fair marketplace for the American LSPTV industry and to help us and our hardworking employees recover from the unfair trade practices of the state-backed Chinese producers,” said Mark Wagner, Club Car President & CEO.
