China prepares to increase tariffs on automobiles in response to the US and EU

The Chinese government is considering raising customs duties on vehicles with large engine capacities, a measure seen as a response to the US decision and the possible decision of the EU to penalize Chinese electric vehicles.

In a statement, the China Chamber of Commerce in the European Union (EU) revealed that it had been “informed by industry experts” about the possible increase in tariffs and mentioned the implications this would have for European and American car manufacturers.

The group pointed to the recently announced increase in tariffs on Chinese electric vehicles by the United States and possible similar measures by Brussels, as part of an EU investigation into subsidies provided by Beijing to manufacturers.

The chamber of commerce referenced an interview published by the official Chinese newspaper Global Times, in which Liu Bin, one of the key experts influencing government policies for the automotive sector, mentioned that Beijing is considering raising tariffs to 25% on imported vehicles with large engine capacities.

Liu singled out sedans and SUVs with engines larger than 2.5 liters as the target of the measure, which “would be in line with WTO regulations” (World Trade Organization) and “would help China promote the transition to greener practices in the automotive sector and advance towards carbon emission reduction goals”.