China signals a 25% increase in tariffs on imported vehicles

The China Chamber of Commerce in the European Union (CCCEU) signaled that it “may raise the temporary tariff rate on imported large-engine vehicles to a maximum of 25 percent.” The potential tariff comes after the Biden administration announced an increase in tariffs on Chinese electric vehicles, among other imports.

Yahoo Finance’s Akiko Fujita joins Catalysts to break down the potential tariff hike from China and the impacts it will have on global auto imports.

For more expert insights and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino

Video transcript

Now China is signaling a 25% tariff on imported cars.

It follows Washington’s announcement of tariffs on China and could be the first sign of a growing row between the nations.

For more on this development, we have our A-fit for more.

What are you looking at here?

Yes, Maddie, you told about the timing of this.

It’s no coincidence that reports of a possible tariff on goods coming into China may be mounting just a week after President Biden announced a major increase in tariffs, particularly around China.

EVs, now deputy director of the China Automotive Policy and Strategy Research Center, is publicly calling for an increase in tariffs on imported cars in China.

Right now the rates 15%.

He wants this to increase to 25%.

Now.

The question is how significant this impact will be When you consider where the cars are made, China is the largest producer, and there are questions about how much of this will really be symbolic.

Now.

China is reportedly looking to increase the tax on cars with bigger engines that would apply mainly to German carmakers that export to China, and we saw those BMW and Mercedes shares being penalized in European trade by more than 2% , the deputy director here saying that China imported 250,000 cars in that specific group last year.

Compare that to the 30 million vehicles that were sold in all of China, so it’s a very small fraction here now.

All this comes as the EU concludes its investigation into Chinese subsidies.

Preliminary charges have been set until July 4 for this, but officials have hinted that they could be announced sooner.

And on the U.S. trade front, we got a clearer picture of when some of those sharp tariff increases on Chinese goods are likely to take effect, the U.S. TRS office said today.

Those on Chinese imports, including EV batteries, computer chips and medical products, will take effect on August 1.