The Middle Kingdom plans to raise import duties on large gasoline-powered cars to 25%, a move that could shake up the automotive market. This measure comes against a backdrop of growing trade tensions with the United States and the European Union. German automakers, major exporters to China, could be particularly hard hit.
Bad news for big cars. China plans to raise import duties on large gasoline-powered cars. This decision comes against a backdrop of heightened trade tensions with the United States and the European Union.
At present, Chinese customs duties on car imports are 15%. The proposed increase to 25% would specifically target gasoline-powered sedans and SUVs over 2.5 liters.
This measure would mainly target German automakers such as BMW, Mercedes-Benz, and Volkswagen, which export SUVs and sedans to China.
Liu Bin, chief expert at the China Automotive Technology & Research Center (CATARC), asserted that this rate is in line with World Trade Organization (WTO) rules. He justified the increase by stressing its alignment with the international organization’s rules and its potential role in balancing domestic and international markets.
“The proposed tariff change for gasoline sedans and SUVs with engines over 2.5 liters is not only in line with WTO rules,” he said. “It will also help support a green, low-carbon development policy.”
Tense context
The proposed tariff increase comes as China faces significant tariff hikes on its automotive exports to the US.
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