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China Considers Raising Tariffs on Imported US and EU Cars with Large Engines to 25%, Up from 15%

May 22, 2024, 03:40 AM

China is considering raising the temporary tariff rate on imported vehicles with large engines to a maximum of 25%, up from the current 15%. This potential move, in line with WTO rules, aims to reduce imports, cut emissions, and promote the green transition in the auto industry. The proposed tariff hike would primarily impact vehicles with engines larger than 2.5 liters, which account for a significant portion of China's consumption of large-displacement vehicles. The increase could significantly affect auto imports from the European Union and the United States, particularly impacting carmakers like Mercedes and BMW. In 2023, vehicles with large engines accounted for about 32% of imported cars in China. This development comes as trade tensions escalate between China, the US, and the EU. The China Chamber of Commerce to the EU has been informed about the potential move by insiders.