HR4736-119

What This Bill Does

The No Chinese Cars Act amends title III of the Trade Act of 1974. It lets the U.S. Trade Representative take section 301 actions not only against the country whose practices are the basis for action, but also against passenger motor vehicles produced in another foreign country by a firm from the section 301 country when the relevant good is already subject to an existing section 301 duty, and by a firm of the People's Republic of China, Russia, Iran, or North Korea. Covered motor vehicles include internal-combustion vehicles, hybrid vehicles, and electric vehicles that require no further manufacturing operations other than readily attachable components or minor finishing. A firm includes a firm or subsidiary headquartered in or controlled by the relevant country. Before USTR modifies or terminates a section 301 action taken on this basis, it must consult with the petitioner and domestic industry representatives and give affected persons a chance to present views, including a public hearing on request. USTR may also take additional section 301 action if doing so maintains or enhances effectiveness. The amendments apply to presidential section 301 actions taken before, on, or after enactment.

Who Benefits and How

Domestic automakers benefit from expanded section 301 tools against Chinese or other covered foreign firms producing cars through third countries. U.S. auto workers benefit if broader trade actions reduce tariff-circumvention pressure from imported covered vehicles. Domestic automotive suppliers benefit from consultation rights before USTR weakens or terminates covered actions. Trade petitioners benefit from required consultation and hearing opportunities before modifications or terminations.

Who Bears the Burden and How

Chinese automakers and covered subsidiaries face expanded exposure to section 301 duties even when production occurs in another country. Russian, Iranian, and North Korean firms face similar exposure for covered passenger motor vehicles. U.S. Trade Representative must define covered firms, consult industry, hold requested hearings, and justify modifications. U.S. vehicle consumers may face higher prices if expanded section 301 duties raise import costs.

Key Provisions

• Expands section 301 actions to passenger motor vehicles made in third countries by covered firms.
• Defines covered passenger vehicles to include internal-combustion, hybrid, and electric vehicles.
• Defines covered firms to include subsidiaries headquartered in or controlled by listed countries.
• Requires USTR consultation and hearing opportunities before modifying or terminating covered actions.
• Applies the amendments to section 301 presidential actions before, on, or after enactment.