The U.S. Imposes Anti-Dumping Tariffs on Chinese Low-Speed Vehicles

The U.S. Imposes Anti-Dumping Tariffs on Chinese Low-Speed Vehicles

On January 26, 2025, the U.S. Department of Commerce announced a preliminary decision to impose anti-dumping duties on low-speed personal transportation vehicles imported from China. These vehicles, commonly known in China as “San Beng Zi” (electric tricycles), have recently surged in popularity across American farms and rural communities.

Understanding the Anti-Dumping Ruling

The preliminary ruling determined that Chinese producers and exporters of these low-speed vehicles have been selling them at unfairly low prices in the U.S. market. The weighted average dumping margins were set between 127.35% and 478.09%. After adjusting for subsidy offsets, the margins remained in the same range (127.29% – 478.09%), meaning Chinese exporters will now face substantial import duties.

The final determination of this anti-dumping investigation is expected on June 16, 2025. The case specifically targets products classified under U.S. Customs HTS Code 8703.10.5030.

Why Are These Vehicles So Popular?

In China, these electric tricycles—affectionately known as “San Beng Zi”—are widely used in rural areas. They typically sell for around 3,000 RMB (approximately $400 USD) and are valued for their:

  • Affordability
  • Practicality for transporting goods and people
  • Simple and durable design
  • Adequate speed and a driving range of around 60 kilometers

In the U.S., particularly on large farms, these vehicles have found a sweet spot. Priced between $5,000 and $12,000 after import, they are still considered an economical solution compared to other utility vehicles on the market. American farmers quickly recognized their potential, leading to a surge in demand and significant order volumes flowing to Chinese manufacturers.

Why the U.S. Is Concerned

The rapid growth of these affordable, imported vehicles has raised concerns among U.S. automakers and domestic manufacturers. Many believe that the low-cost advantage of Chinese electric tricycles could pose a substantial threat to local industry players, especially those producing small-scale transport and farm utility vehicles.

In response to these concerns, the U.S. Department of Commerce initiated anti-dumping and countervailing duty investigations on July 11, 2024. The current preliminary ruling is a direct outcome of these investigations, aiming to create a more level playing field for U.S. manufacturers.

What’s Next?

  • Final Ruling: The U.S. is expected to issue a final decision on June 16, 2025. If confirmed, the anti-dumping tariffs will remain in place, making Chinese low-speed vehicles significantly more expensive for U.S. buyers.
  • Industry Impact: The increased costs may slow the import surge, protect U.S. manufacturers, but also limit affordable transport options for American farmers.
  • Global Trade Outlook: This case is another example of increasing trade tensions and how countries are using anti-dumping measures to safeguard local industries.

Key Takeaway

The story of the “San Beng Zi” is a classic example of how global demand, pricing strategies, and trade protectionism intersect. As low-speed electric vehicles become more integrated into rural American life, the balance between affordability and domestic protection will remain a point of contention.

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  • June 10, 2025

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