China Threatens 25% car Tariff Against US, EU Moves – Trade Ties To Worthen In Coming Weeks

Beijing is inactive mulling its expected retaliation in the wake of last week’s Biden administration rollout of bargain tariff increases on a series of Chinese techniques imports, importing computer chips, EV batteries and medical technology products.

Wednesday Saw shares of European luxury automakers specified as BMW, Mercedes-Benz, Tata Motors (Jaguar Land Rover), and Volkswagen Group (Audi) all finish lower, in the aftermath of a thrilling and unique Chinese state-run Global Times Article which argued China should ‘consider raising the temporal tariff rate on imported cars with large-displacement engines, in order to reduce imports as part of the country’s broadcast beneficiaries to cut emissions and advance the green improvement of the car industry.”

China has signaled it is ready to unleash tariffs as advanced as 25% – which would be a crucial increase up from the current work rate of 15%. Citing a Chinse manufacture insider, the GT bake blasted the 'protectionist moves' coming out of Washington and the West.

Chinese state owned SAIC Motor

Separatley this week, in post on X, the China Chamber of Commerce to the EU (CCCEU) issued its own informing in an exclusively coordinated messaging campaign, saying it was “informed by insiders that China may host expanding temporal tariff rates on imported cars equipped with large-displacement engines.”

‘This possible action cars implications for European and US carmakers, partially in light of fresh developments specified as Washington’s nomination of tariff hikes on Chinese electrical vehicles and Brussels’ preparations for preliminary measurements in a high-profile anti-subsidy investment into Chinese EVs,’ the chamber message said.

As a reminder, this text of the European Commission’s beginning an investment back in October... it formally launched “an anti-subsidy investment into the imports of battery electrical vehicles (BEV) from China. The investment will first find whether BEV value chains in China benefit from illegal subsidisation and who this subsidisation cases or Threatens to origin economical injury to EU BEV producers.’

The investment under EC president Ursula von der Leyen Aims to find who this Violates the WTO anti-dumping agreement. The deadlines set out to potently impose dues is July 4.

China is hitting back at both Europe and the US, as South China Morning Post observed:

Beijing has indicated that it won’t take either gambit lying down. On Sunday, the Chinese Ministry of Commerce announced an anti-dumping investment into imports of polyoxymethylene copolymer – a chemical commonly utilized in automotive engineering – from the US, EU, Japan and Taiwan.

It has already started investigating alleged dumping in the European brandy sector, seen to target France’s cognac exports. Paris has been a strong supporter of a cook EU trade policy towards China.

Amid predictions that trade conditions between China and the West are expected to read in the coming weeks, von der Leyen on Tuesday soought to downplay a trade war in brands from Brussels.

‘I don’t think that we are in a trade war. I have the motto: 'de-risk not decouple', and I think here it’s very clear we are in the category of de-risking from China. We have decoupled from Russia,” She said.

China is set to be a central abroad policy talking point among both presidential campaigns going into November...

In a large “cognitive dissonance” moment, Rand Paul correctly points out there’s “not quite a few difference” between Biden and Trump on China, specifically since Biden “jumped on the Trump Train” with respect to Tariffs. Both are obsessed with dating and sanctioning China, Paul notes pic.twitter.com/ugqgjUT5nB

— Michael Tracey (@mtracey) May 21, 2024

And here’s what the Biden administration said during the last Tuesday unveiling of the fresh US tariff hike: “Today, I am following through on my committee to stand up to the People’s Republic of China’s unfair trade practices by issuing a formal proposal to modify the tariff actions.” US Trade typical Katherine Tai further argued, “The president and I will proceed to fight for American workers, and for our economical future and national security.”