Big swing: Chinese golf cart makers are moving to US to dodge tariff blitz

The US’ strategy of ramping up tariffs on made-in-China electric vehicles to push manufacturers to shift production to America appears to be paying off – in the world of golf carts, at least.

The US Department of Commerce recently announced preliminary anti-dumping duties of up to 478.09 per cent on low-speed personal transport vehicles imported from China, which includes golf carts. Some Chinese producers, however, will be subject to a lower rate of between 127.29 and 262.55 per cent.

The fresh tariffs will be added to an earlier round of preliminary anti-subsidy duties imposed in November, when the subsidy rate for most Chinese producers was set at about 22 per cent – though two companies were hit with a 515.37 per cent rate.

The decisions followed an investigation by the US government initiated in July, in response to a petition filed by US manufacturers. Previously, US tariffs on golf carts imported from China were 10 per cent.

While the current tariff levels are not final, with the rates due to be confirmed in several months’ time, they are already having a major impact on China’s huge golf cart industry – which is heavily dependent on the US market.

According to the manager of one leading manufacturer headquartered in the eastern Chinese province of Zhejiang, some Chinese producers will have no choice but to offshore production to survive the tariff hike.

“Basically, we have to move our production lines overseas, otherwise we won’t be able to do business in the United States,” said the manager, who spoke on condition of anonymity as he was not authorised to speak to the media.