Chinese golf cart makers are moving to the U.S. to avoid tariffs

The U.S.’ strategy of ramping up tariffs on made-in-China electric vehicles to push manufacturers to shift production to the U.S. appears to be paying off – in the world of golf carts, at least. The U.S. Department of Commerce recently announced preliminary anti-dumping duties of up to 478.09% 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%. The new 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% – though two companies were hit with a 515.37% rate. The decisions followed an investigation by the U.S. government initiated in July, in response to a petition filed by U.S. manufacturers. Previously, U.S. tariffs on golf carts imported from China were set at 10%.

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 U.S. market. According to the manager of one leading manufacturer headquartered in Zhejiang province, 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 authorized to speak to the media. China is a leading producer of golf carts, but the sport is underdeveloped domestically, and the U.S. is the industry’s dominant export market.

China exported about 279,000 golf carts and similar vehicles worth nearly USD1 billion in 2024, with 81% going to the U.S., according to China Customs data. Several Chinese manufacturers have already begun shifting production overseas in response to the U.S.’ tariff hikes. One company, Zhejiang Taotao Vehicles, put a new golf cart factory into operation in the U.S. state of Texas in October. It is also moving production lines for its all-terrain vehicles to Vietnam. Company Chairman Cao Matao said in September that China was still playing an important role in the supply chain for its U.S. plants, but that it would gradually transition towards sourcing parts from Vietnam or producing them locally in the U.S. “Vietnamese factories would be relatively safe for the next two years but may become a target for anti-dumping and countervailing actions in the future,” Cao said. “Ultimately, the best way to avoid anti-dumping and countervailing duties is to localize manufacturing and assembly in the United States, with Vietnam as the supporting supply chain.”

Kandi Technologies, another vehicle manufacturer with production bases in Zhejiang and Hainan provinces, announced in October that it planned to invest USD100 million to build a lithium battery manufacturing and battery-pack facility in the U.S. in 2025. The company will also build a USD30 million production line for all-terrain vehicles – including golf carts and utility vehicles – in the U.S. this year. Once fully operational, the facility will have an annual production capacity of 50,000 units, and will supply the North American market, the South China Morning Post reports.