Beijing, May 23, 2024 – The Chinese government has threatened to impose retaliatory tariffs on car imports from the European Union (EU) and the United States. This is in response to moves by Brussels and Washington in the trade sphere.
In October last year, the European Commission launched an investigation into alleged Chinese subsidies for electric vehicles, which it believes could violate World Trade Organization (WTO) rules. The US administration of Joe Biden, meanwhile, announced last week an increase in tariffs on various products from China, including electric vehicles, which are scheduled to be nearly quadrupled to 100% from August 2024.
In response to these moves, the China Chamber of Commerce for the EU (CCCEU), citing “well-informed sources,” said China is considering raising tariffs on imports of gasoline cars with engines over 2.5 liters from the EU and the US from 15% to 25%.
According to Chinese automotive strategy expert Liu Pin, this proposed tariff increase is in line with WTO rules and is intended to accelerate the green transition. He also added that it differs from protectionist measures implemented in other parts of the world.
The tariff increase could have a significant impact on the automotive industry in the EU and the US. China is an important market for European and American carmakers, and if tariffs were raised, it could lead to higher car prices and lower sales.
The situation is still unclear and China has not yet made a final decision on whether to impose the tariffs. All stakeholders will be watching closely to see how the situation develops.
Sources: Bloomberg
