China To Slap 25% Tariffs On U.S., EU Cars

China may impose tariffs as high as 25% on imported cars with 2.5-liter engines on the EU, the China Chamber of Commerce (CCCEU) said, Firstpost reported.

The move by the China Chamber of Commerce will heighten trade tensions with the US and the European Union (EU). I Photo: Wpcpey Wikimedia Commons

The move will heighten trade tensions with the US and the European Union (EU). The possible tariffs come as the European Commission prepares to announce its decision on whether to impose duties on Chinese electric vehicles (EVs) by June 5.

The EU is investigating Chinese subsidies in its booming EV market, and China has responded with threats of reciprocal tariffs on European wine and dairy products.

The CCCEU highlighted comments from Liu Bin, chief expert at the China Automotive Technology & Research Center, published in the Communist Party’s Global Times newspaper.

Liu suggested temporarily raising tariffs on imported cars with engines larger than 2.5 liters, which could legally reach up to 25% under World Trade Organization (WTO) rules.

In 2023, China imported 250,000 such cars, making up about 32% of all imported vehicles. Key manufacturers likely to be affected by these tariffs include Toyota, Mercedes-Benz, and BMW.