China May Impose Tariffs of up to 25% on Imported Vehicles

by | 22. May 2024 - 09:40 | Politics

Response to U.S. tariffs announced last week. Would target large-engine vehicles.

China could introduce tariffs on imported large-engine vehicles of up to 25 percent, according to the China Chamber of Commerce to the EU. In a post on the platform X, the lobby group said insiders informed them of the move and added that it would have implications for the European Union and the United States. The levy would be the first major Chinese retaliation following U.S. President Biden’s announcement to impose tariffs on imported Chinese goods last week and the EU launching an investigation into Chinese subsidies on electric vehicles last year.

In 2023, the People’s Republic imported 250,000 cars with engines larger than 2.5 liters, accounting for 32 percent of the total imported cars. If implemented without explicitly targeting the EU or the United States, the most affected carmakers would also include Japanese brands such as Toyota, in addition to Mercedes and BMW, according to the consultancy Intralink in an interview with Bloomberg.

The Chinese response was first hinted at by Liu Bin, chief expert at the China Automotive Technology & Research Center, in an interview with the government-affiliated Global Times on Tuesday. He proposed an import tariff on vehicles with engines larger than 2.5 liters, a move that is within WTO regulations, according to Bin.

Photo: iStock/MAGNIFIER

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