China is set to add additional tariffs to U.S.-built vehicles with engines larger than 2.5 liters. The country says the anti-subsidy and anti-dumping duties will be applied to vehicles built by European and Japanese nameplates in the U.S. as well as automakers based in Detroit
Duties will range from two to 21.5 percent. The new duties are in addition to the-25 percent tariffs already imposed on all imported vehicles. GM faces duties from 8.9 to 12.9 percent; Chrysler will see duties between 6.2 percent and 8.8 percent. Duties levied on U.S. .-built BMW and Mercedes-Benz vehicles will be two percent and 2.7 percent, respectively.
The statement from the Chinese ministry said that “substantial damage to China’s domestic industry” had been caused by subsidies benefiting U.S.-built vehicles. The new duties are the latest in a series of on-going “tit-for-tat” trade probes during recent months.
Twelve trade cases have been filed against China by the U.S. since China joined the WTO 10 years ago. Five since Barack Obama became president. Most cases involve protectionism and China’s state support of strategic industries. Last month, China’s Commerce Minister, Chen Deming, said the country would likely fight back if other countries resort to trade protectionism, according to Automotive News.