China May Impose Tariffs on Car Imports, Business Group Says

China may raise tariffs on imported cars, a Chinese business group said, in a potential tit-for-tat move that comes after President Biden last week imposed higher tariffs on Chinese electric vehicles.

The Brussels-based China Chamber of Commerce to the EU said in a statement posted on X that it had been informed by insiders that Beijing “may consider increasing temporary extra tariffs on imported cars equipped with large-displacement engines.”

“This potential action carries implications for European and U.S. automakers, particularly in light of recent developments such as Washington’s announcement of tariff hikes on Chinese electric vehicles (EVs) and Brussels’ preparations for preliminary measures in a high-profile anti-subsidy investigation into Chinese EVs,” the chamber said.

Potential 25% Tariff on Vehicle Imports

The chamber said in the post that it had noted an interview given to state-owned newspaper Global Times by a senior policy adviser that China’s temporary tariff rate on imported vehicles could be raised to a maximum 25%.

Beijing is reportedly ramping up threats of retaliation as a deadline looms for the European Union to impose tariffs on Chinese EVs, after a probe into Beijing’s subsidies for the industry.

The potential Chinese move is also taking aim at recent U.S. tariffs. President Joe Biden last week imposed sweeping tariffs on a large swath of Chinese imports, hiking those on Chinese EVs to 100% from 25%. The tariffs come at a time when U.S. officials are accusing China of overcapacity in manufacturing.