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China lowers tariffs on imported vehicles to 15%

by MIKE OCHONMA

July 12, 2018 | 8:24 am
  |     |     |   Start Conversation
China lowers tariffs on imported vehicles to 15%

While the US is considering discourage vehicle imports through increment in import duty, the Chinese government has slashed tariffs on imported light vehicles to 15 percent from 25 percent, effective July 1.

As a result of this move, import tariffs for auto parts were reduced to 6 percent from around 10 percent, according to China’s official Xinhua news agency.Plans to cut the tariffs were announced by the Chinese finance ministry on May 23.

However, vehicle imports from the United States will be subject to the 15 percent tariff only from July 1 to July 5 unless the Trump administration cancels plans to levy a 25 percent tariff starting July 6 on Chinese goods worth $50 billion.

In retaliation for the latest U.S. tariffs, Beijing announced on June 16 that an equal value of U.S. imports, including light vehicles, will be subject to an additional 25 percent tariff starting July 6.

That means importers of U.S.-made vehicles would have to pay a tariff of 40 percent when clearing Chinese customs.  In 2017, China imported around 1.25 million vehicles, including about 280,000 cars and light trucks, or 22 percent, from the U.S.

In China, major importers of U.S.-made include American brands such as Jeep, Lincoln and Tesla, as well as international brands such as Mercedes-Benz, BMW, Lexus and Infiniti.

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by MIKE OCHONMA

July 12, 2018 | 8:24 am
  |     |     |   Start Conversation

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