Author：AliceDate：2025-7-31
⚖️ 1. Specific Impact of Tariff Policy
Tariff Rates Soar
The United States has imposed anti-dumping duties of up to 478.09% (minimum 127.29%) on Chinese-made golf carts, in addition to the existing countervailing duty of approximately 22%.
For example, a Chinese-made golf cart originally priced at $8,000 could see its retail price soar to $43,000, completely destroying its cost competitiveness.
Expanded Coverage
The new tariffs cover complete vehicles and core components (e.g., a 25% increase on lithium batteries and a 50% increase on semiconductors). Even companies with overseas factories may face cost pressures due to imported parts.
2. Company Response Strategies
Capacity Relocation and Localization
US Factory Establishment: Taotao Automotive has commenced production in Texas, Florida, and other locations, with a planned production capacity of 50,000 vehicles by 2025, circumventing tariffs on completed vehicles through "Made in North America" production.
Southeast Asian Expansion: The Vietnamese factory leverages the ASEAN trade agreement (40% tariff on completed vehicles and approximately 2% on components) to reach the European and American markets.
Cost and Pricing Adjustments
Tariff costs are being passed on through price increases. Taotao Automotive's testing shows that even after the price increase, prices remain lower than those of domestic US products (e.g., similar US-made vehicles are approximately $9,000-11,000).
Optimizing the supply chain to reduce reliance, for example, by in-house manufacturing of core components (70% in-house production of motors and batteries).
Market Diversification
Accelerating expansion into the European, Latin American, and Middle Eastern markets.
Moving towards high-end: Developing intelligent control systems and high-safety models to meet the new US FMVSS 305a regulations.
III. Reshaping the Industry Landscape
Market Share Shift
China's share of US exports has shrunk sharply from 81% (to 226,000 vehicles in 2024), giving Southeast Asian companies the opportunity to seize market share.
Diverging Survival Pressures
Small and medium-sized enterprises that haven't relocated production capacity are being forced to exit the US market.
Local companies face short-term pressure (e.g., US labor costs are 3-5 times higher than domestic labor costs), but can optimize costs in the long term through IRA tax credits (up to $7,500 per vehicle).
Under such a challenging environment, our company has remained resilient, striving to ensure the highest quality products and maintaining prices between $4,000 and $7,000 USD.
In this competitive environment, stockpiling at low prices has become the norm, with everyone eager to secure the lowest price and minimize losses.
We have also devised a comprehensive strategy to minimize losses for our customers within legal limits regarding the impact of US tariffs.
In my planning, nothing is overly complex, only unclear logical thinking.
Business owners interested in collaboration can contact me.
Business owners interested in purchasing golf carts from the US can contact me.
-Aron
-0086 18963017520
-Shengjia (Dezhou) Intelligent Manufacturing Co., Ltd.
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