China car firms seek 25% tax on EU – state media

• China car firms seek import taxes of up to 25% on EU vehicles if the EU implements tariffs on cars from China
• The proposed tariffs would specifically target EU cars with large petrol engines
• It comes after EU threatened Chinese electric vehicle makers with tariffs up to 38% starting July 4
• EU’s actions follow the US raising its tariff on Chinese electric cars from 25% to 100% last month

China car firms seek 25% tax on EU – state media

Chinese car companies are urging Beijing to impose import taxes of up to 25% on European Union (EU) vehicles if the EU implements tariffs on cars from China. This demand was made at a private meeting organised by China’s Ministry of Commerce, which included representatives from European car firms.

The proposed tariffs would specifically target EU cars with large petrol engines. This move comes after the EU threatened Chinese electric vehicle (EV) makers with tariffs up to 38% starting July 4.

The meeting in Beijing included four Chinese and six European car companies. Volkswagen confirmed its attendance but declined to comment, while BMW and Porsche did not immediately respond to requests for comments.

A state media report stated, “China’s car companies called on the government to adopt firm countermeasures against the EU,” suggesting higher provisional tariffs on large-displacement petrol vehicles imported from Europe within World Trade Organization rules.

Previously, the state-run Global Times suggested 25% tariffs on petrol engines larger than 2.5 litres, targeting “luxury or ultra-luxury” vehicles, which may not significantly impact sales volumes.

The EU’s European Commission recently announced provisional conclusions that Chinese EV manufacturers could face tariffs if discussions with Chinese authorities fail. Companies cooperating with the investigation might face a 21% duty, while non-cooperative firms could face up to 38.1%, in addition to the current 10% tariff on all Chinese electric cars.

The EU’s actions follow the US raising its tariff on Chinese electric cars from 25% to 100% last month. In response, China has condemned these measures as protectionist and begun retaliatory actions, including investigations into imports of European pork and chemicals from the EU and US.