Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
China's Commerce Ministry held discussions with automakers and industry associations on Friday to explore the possibility of raising import tariffs on large-engined gasoline vehicles. This move comes as the European Union (EU) approaches a crucial vote in October on whether to impose additional tariffs on Chinese-made electric vehicles (EVs), a decision that could escalate trade tensions between the two economic giants.
Key Takeaways:
Potential Tariff Increase on Large-Engined Vehicles: The Chinese government is considering raising import tariffs on large-displacement gasoline vehicles, signaling a possible retaliatory measure against the EU's proposed duties on Chinese EVs. This move would particularly impact Germany, which exported $1.2 billion worth of such vehicles to China in 2023.
EU's Proposed Tariffs on Chinese EVs: The EU is set to vote on whether to impose additional duties of up to 36.3% on Chinese electric vehicles, on top of the existing 10% import tariff. While the EU recently lowered the proposed tariff rate from 37.6%, it has not abandoned the idea, much to China's discontent.
China's Retaliatory Actions: In response to the EU's potential tariffs, China has already expanded its trade investigations into European products. This includes adding anti-subsidy probes on various dairy goods to existing anti-dumping checks on pork and brandy. The possibility of increased tariffs on large gasoline vehicles could be another lever in China's broader strategy to counter the EU's actions.
Impact on EU Member States: The EU's decision on EV tariffs is contentious, with different member states holding divergent views. While countries like France, Italy, and Spain support the tariffs, Germany, Finland, and Sweden have shown reluctance, abstaining from a July advisory vote. China's efforts to canvass member states aim to block the tariffs by securing a "qualified majority" of 15 EU members representing 65% of the EU population.
As the EU vote on Chinese EV tariffs draws near, the potential for escalating trade tensions between China and the EU looms large. China's discussions about raising tariffs on large gasoline vehicles signal that it is prepared to retaliate if the EU proceeds with its proposed measures, setting the stage for a complex and high-stakes trade negotiation.
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