China mulls imposing 25% tariff on foreign cars with big engines

The European Commission has launched a probe into the surge of electric vehicle (EV) imports from China into the EU. This surge has outpaced other Chinese export markets, leading to concerns about state subsidies and the need to level the playing field. If substantiated, the Commission may impose countervailing tariffs on EU imports of battery electric vehicles (BEVs) from China.

As the probe concludes, China is gearing up for potential tariffs on its EV imports into Europe. The European Union is expected to provide more detailed information about the tariffs on Chinese EV imports by early June. In response, China is contemplating tariffs on cars from the United States and Europe, with plans to raise its EU car import tariffs from 15% to 25%.

This proposed increase would affect vehicles with engines larger than 2.5 liters. In addition to potential tariffs on cars, China is also considering increased tariffs on other EU products, such as liquor and dairy, mirroring similar actions taken by the United States. The evolving trade dynamics between China and the EU demonstrate the complex interplay of global trade policies and the potential impacts on various sectors.

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