On Tuesday, May 21, the “EU-China Business Association,” representing Chinese enterprises in Europe, stated in a press release that China is considering raising tariffs on imported cars equipped with large-displacement engines, a move that will impact the automotive industries in Europe and the United States.
The EU-China Business Association (CCCEU) released a press release on social media X on May 21, claiming to have learned from insiders that China may consider imposing tariffs on imported cars with engines larger than 2.5 liters, with a temporary tariff rate increase of up to 25%.
If the news is confirmed, it would signify a further escalation of the trade war between China and the United States and Europe.
On May 21, U.S. Treasury Secretary Janet Yellen delivered a speech in Frankfurt, Germany, urging the European Union and the United States to coordinate actions to address China’s industrial policies leading to overcapacity and protect the vitality of manufacturers on both sides of the Atlantic.
Yellen stated in her speech, “As we sit here, China’s industrial policies may seem far away. But if we don’t unite strategically to address them, the vitality of businesses in both of our countries and around the world is threatened.”
Yellen emphasized that China is dumping excess capacity onto overseas markets, posing a serious threat to industrial development in the United States, Europe, and emerging market countries.
She said, “From pursuing economic coercion to macroeconomic imbalances leading to industrial overcapacity, China’s actions have caused concern for the United States, Europe, and many other countries.”
A week ago, the White House announced tariffs on $18 billion worth of goods imported from China, including electric cars, solar panels, semiconductors, and 13 other categories of goods, with tariffs on electric cars increasing from 25% to 100%.
Meanwhile, the EU has initiated a series of anti-subsidy investigations into Chinese imports, including an anti-subsidy investigation into Chinese electric cars launched last October. It is expected that the EU will implement new temporary tariffs in early July after completing the investigation.
Last month, during a visit to China, Yellen warned the Chinese authorities that their dumping of cheap goods flooding global markets was unacceptable to the United States.
According to the official website of the EU-China Business Association, the organization was initiated by Chinese companies including the Bank of China, representing Chinese enterprises in Europe.