China Mulling New Import Duties on EU, US Cars, Business Group Says

China may consider raising import tariffs on cars from the EU, the U.S. and possibly elsewhere, the China Chamber of Commerce to the EU said this week.

The Chamber said it was “informed by insiders” on May 21 that China could increase temporary tariffs on cars equipped with “large displacement engines.” This “carries implications for European and U.S. automakers,” the chamber said, pointing to the fact that the U.S. announced new tariffs on Chinese electric vehicles this month (see 2405140008) and the EU has an open countervailing duty investigation on Chinese EVs (see 2310040012 and 2403150047).

The Chamber also noted that an expert with the China Automotive Technology and Research Center told the state-run Global Times that China could place a 25% duty on large-engine imported vehicles.

“The chamber perceives this information as significant to the China-EU trade relationship and economic ties,” it said.