On June 14, the American Manufacturing Alliance released a report concerning China's industrial capacity.
The organization called for the U.S. to impose stricter trade barriers on imported goods from China. It stated that there is a need to reinstate the "Section 421" provision to address the threat of a new surge in imports.
According to Tire World Network, "Section 421" refers to an anti-import surge provision in U.S. trade law.
The most notable use of this provision occurred in 2009 with the "China Tire Safeguard Case," in which then U.S. President Obama used the provision to significantly raise tariffs on Chinese tires.
Additionally, the American Manufacturing Alliance specifically highlighted Vietnam and Mexico in its report.
The organization urged the U.S. government to expedite the tariff imposition process on China, Vietnam, and Mexico.It emphasized that the broader and longer the tariff coverage, the better it could help avoid permanent damage to the U.S. economy.
In fact, the American Manufacturing Alliance has been vocal for some time in opposing imports from Mexico. This stance was partly due to discussions between China's top three electric vehicle manufacturers about setting up factories in Mexico. In response, China's Foreign Ministry spokesperson repeatedly stated that China-Mexico cooperation is a matter between two sovereign nations, urging relevant countries to stop using economic coercion and avoid turning normal trade exchanges into security issues.
