The Chinese government is considering raising tariffs on imported cars by 25% to counter US tariff sanctions!

Zheng Yi

2024-05-25 19:46Published in Shandong

The Chinese government is considering a 25% increase in tariffs on imported cars. This appears to be in response to U.S. measures to raise tariffs on Chinese-made electric vehicles to 100%.

On the 21st, the Chinese Chamber of Commerce in the European Union said through SNS "X" (old Twitter): "The Chinese government is considering temporarily increasing the tariff rate of imported cars with high-displacement engines. ”

According to China's state-run Global Times, Liu Bin, deputy director of the China Automotive Technology and Research Center, said: "It is necessary to increase tariffs on imported cars with large displacement engines of more than 2,500cc." While complying with WTO (World Trade Organization) regulations, tariffs can be temporarily increased by up to 25%. ”

Recently, the Biden administration announced that it will raise tariffs on "Chinese imports, including electric vehicles, semiconductors and medical products" from August 1. He also said that it would raise tariffs in line with China's oversupply and unfair trade practices.

In particular, tariffs on Chinese-made electric vehicles have been raised from 25% to 100%. At the same time, the European Union recently began investigating subsidies for Chinese-made electric vehicles after European automakers' sales were threatened in October last year. This is interpreted as a pre-emptive measure to raise tariffs. It is reported that last month, it was considering a plan to raise import tariffs by only 50% on Chinese-made electric vehicles.

Last year, China imported 250,000 cars with engines with a large displacement of more than 2,500 cc. This accounts for 32% of China's imported car market. In addition, imports account for 80% of the market for new high-displacement engines sold in China. Currently, China's Ministry of Commerce imposes a 15% tariff on cars of European brands.

If the increase is passed, European high-end automakers such as Jaguar Land Rover, BMW, Mercedes and Audi will be hit the hardest. Typically, the price of the Porsche Cayenne, which is very popular in Chinese, is expected to skyrocket.

The purpose of the Chinese government's tariff hike is to "reflect the will to accelerate carbon neutrality and green development" and "this move is fundamentally different from the protectionist measures adopted by some countries and regions". This could be in response to the U.S. and European Union, which have recently conducted investigations into China's electric vehicle tariff hikes and subsidies.

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