Chinese Automakers Seek Retaliatory Tariffs on EU Cars

A BYD Ocean-M electric car is displayed at the Beijing Auto Show in Beijing on April 25, 2024. (Photo by Pedro PARDO / AFP)

Chinese automakers have urged Beijing to retaliate against Brussels' decision to place curbs on Chinese electric vehicle exports by raising tariffs on imported European gasoline-powered cars, the state-backed Global Times newspaper said on Wednesday.
In a closed-door meeting on Tuesday also attended by European automakers, Chinese car companies and industry groups suggested authorities hike tariffs on large gasoline-powered vehicles imported from the European Union, the report said, according to Reuters.
EU trade policy is turning increasingly protective owing to concerns China's production-focused, debt-driven development model could see the 27-member bloc flooded with cheap goods, including EVs, as Chinese firms look overseas due to weak domestic demand.
The European Commission's June 12 announcement that it would impose anti-subsidy duties of up to 38.1% on imported Chinese EVs from July follows the United States hiking tariffs on Chinese cars in May, and opens a new front in the West's trade war with Beijing, which began with Washington's initial import tariffs in 2018.
The Global Times first reported late last month that a Chinese government-affiliated auto research center was suggesting China raise its import tariffs on large gasoline-powered cars to 25%, citing an industry expert.
China's current import tariff for cars is 15%.
Chinese authorities have previously hinted at possible retaliatory measures through state media commentaries and interviews with industry figures.
The same newspaper last month also hinted that Chinese firms planned to ask authorities to open an anti-dumping investigation into European pork products, which China's commerce ministry on Monday announced it would undertake. It has also urged Beijing to look into EU dairy imports.