In recent years, the import volume of Chinese-made golf carts in the United States has surged sixfold, prompting American golf cart manufacturers to call for a 100% tariff increase. This request was directed to the Biden administration by two Georgia-based golf cart manufacturers, Club Car LLC and Textron Specialized Vehicles Inc.
According to Bloomberg, Club Car’s President and CEO Mark Wagner stated in an email on Friday that the rapid growth in Chinese imports, coupled with subsidies from the Chinese government, has allowed them to gain a larger market share in the U.S. automotive consumer market. Wagner emphasized the need for action to address this issue.
Over the past three years, imports of Chinese golf carts and other recreational vehicles in the U.S. have increased substantially, partly due to their ability to be classified under lower tariff rates compared to regular-sized electric vehicles. It has been reported that Chinese golf carts often pass through customs at lower tariff rates and are then modified in the U.S. to avoid higher tariffs.
Both Club Car and Textron Specialized Vehicles assert in their letter to the U.S. Trade Representative office that golf carts and similar vehicles have been able to evade the proposed tariffs on electric vehicles imposed by the Biden administration.
Friday marked the deadline for the public to submit comments on the 301 tariffs to the U.S. Trade Representative office.
The two companies manufacture E-Z-GO and Cushman golf carts and are members of the “American Personal Transportation Manufacturers Alliance.”
According to documents submitted, in 2023, Chinese golf carts and similar products were classified under “special designated vehicles,” with an import value of $916 million, significantly higher than the $148 million in 2020.
In a letter to the U.S. Trade Representative dated June 25th, Willey International Law Firm stated that Chinese golf cart dealers have been “significantly and systematically underselling” vehicles, leading to a decline in the performance of the domestic industry in the U.S., including production volume, capacity utilization, shipments, employment, and financial performance in 2024.
Legal actions have been taken against the Department of Commerce and the U.S. International Trade Commission, accusing Chinese-made golf carts of dumping, and seeking remedies in the form of anti-dumping and countervailing duties.
Robert DeFrancesco, a partner at Willey International Trade Practice, indicated that the trade case regarding Chinese-made golf carts is expected to take approximately a year to resolve.