'Unfair' tariffs making American vehicles costly in China, lawmakers say

More than two dozen members of the U.S. House of Representatives sent a letter Monday to President Barack Obama criticizing new duties being levied on American-made vehicles sold in China.

Twenty-seven legislators, including U.S. Reps. Pete Visclosky, D-Merrillville; Joe Donnelly, D-Ind.; and Bobby Rush, D-Ill., said the "unfair" new duties the country's Ministry of Commerce announced will increase the sale price of vehicles by up to 34.4 percent. Existing taxes and duties already can add up to 25 percent to the cost of American-made vehicles, the letter said.

The letter urged the White House to work with the Office of the United States Trade Representative to initiate a dispute at the World Trade Organization to contest the recent duties. Visclosky said it's important for the United States to continue taking a stand to defend manufacturing on an international stage.

"The American auto industry is critical to our nation's economic recovery, and your administration must continue working to help American manufacturers fight foreign trade barriers, boost exports and create jobs," the letter said. "American workers are the best in the world, and we must allow them to compete on a level playing field."

Trade relations with China have been in the cross hairs of American manufacturing advocates with President Obama's Tuesday visit to speak with Xi Jinping, vice president of China. The U.S. trade deficit with China reached $295.5 billion in 2011, a record high. That value is about 53 percent of the country's import-export imbalance.

Last month, U.S. Trade Representative Ron Kirk hailed it as a victory when the World Trade Organization Appellate Body found China's export restrictions on certain raw materials were inconsistent with being a member of the group. The body rejected the country's defense that its export restraints on materials key for steel, aluminum and chemicals industries were conservation measures or measures taken to manage critical shortages of supply.

In a blog post Tuesday, Thomas Gibson, president of the Washington, D.C.-based trade association American Iron and Steel Institute, said China's currency undervaluation and influence with state-owned business enterprises are also problems that run counter to WTO participation.