EU - China China talks with car industry about import tariffs for combustion engines

In the exchange of blows between China, the EU and the USA, Beijing is firing another trade policy warning shot. This time it's about car imports. German manufacturers could also be affected.

The Ministry of Commerce has invited experts, industry associations and industry representatives to gather opinions and suggestions on increasing tariffs on imported combustion cars with large engines, according to the authority in Beijing. The ministry did not provide further details on the participants or the results of the meeting.

China is thus pushing ahead with another possible countermeasure after the EU recently adjusted its information on additional tariffs on electric cars from the People's Republic, much to Beijing's annoyance. According to the EU Commission, Chinese subsidies on electric cars from the Far East distort the market in the European Union.

First warning back in May

Back in May, the Chinese Chamber of Commerce in Brussels warned of a tariff increase on cars imported into China in response to the threat of additional tariffs at the time. At the time, "insiders" were quoted as saying that the vehicles concerned could be subject to a 25 percent levy.

This possible measure would "have an impact on European and American car manufacturers, particularly in view of the latest developments", the Chamber stated at the time. German car manufacturers would also be significantly affected by import duties.

The USA had already imposed high punitive tariffs on Chinese e-cars. The EU has yet to decide whether the punitive tariffs will actually be imposed. The Commission must put the decision to a vote among the 27 EU member states. There should be clarity by the end of October.

China sharply criticized the action and accused the EU of protectionism and harming the interests of consumers in Europe, among other things. At the same time, China is scrutinizing goods already imported from the EU in anti-subsidy investigations. These include spirits, pork and certain dairy products.

SDA