The commerce ministry from China announced plans to impose anti-dumping and countervailing duties on vehicles with large displacement engines imported from the United States.
General Motors vehicles will carry punitive duties of up to 12.9 percent, while Chrysler vehicles will be taxed up to 8.8 percent, the ministry said in a statement on its website. These duties will add to China’s current import tariffs of 25 percent on imported cars. Other carmakers that make cars in the U.S. and export them to China will also be affected. The U.S. units of BMW and Daimler will face duties of 2 percent and 2.7 percent, respectively, the ministry said.
The decision comes three months after the World Trade Organization rejected China’s appeal of a ruling that approved U.S. duties on tire imports. “It’s more of a tit for tat thing, they’ve been slapping duties on each other for a while now. This is hardly going to flummox the buyer of a high-end car. They’re really not going to be bothered by a few percent here and there. It’s the super rich who are buying these cars,” Namrita Chow, a senior analyst at IHS Automotive was quoted as saying by Bloomberg.
The supplementary taxes only affect vehicles with engines that are above 2.5 liters, according to the ministry’s website.