On Tuesday evening (21) local time, the European Union China Chamber of Commerce issued a statement on its X official account, pointing out that according to internal information, China may consider raising the temporary tariff rate on imported cars with large displacement engines. The potential move would have a significant impact on carmakers in Europe and the US, especially in the context of recent US and European trade restrictions on Chinese electric vehicles.

    According to Hong Kong media "South China Morning Post" reported on the 22nd, this move is seen as a kind of "countermeasure" to the trade action taken by Europe and the United States against China's electric vehicles.

    Earlier, Liu Bin, chief expert of China Automotive Technology Research Center, disclosed relevant information in an interview, he stressed that China's temporary tariff rate on imported gasoline cars and SUVs with engine displacement greater than 2.5L May be raised to 25%, which is in line with WTO rules and market economy principles, aimed at promoting green development and achieving the "dual carbon" goal.

    According to statistics, in 2023, China imported about 250,000 vehicles with engine displacement greater than 2.5L, accounting for 32% of the total number of imported vehicles, and also accounted for 80% of China's consumption of large-displacement engine vehicles. Therefore, the increase in the temporary tariff rate will directly affect cars imported from the EU and the United States.

    The South China Morning Post mentioned that the announcement comes at a time when China's trade relations with Western powers are in tension. Last week, despite China's strong opposition, the Biden administration announced high tariffs on a number of Chinese imports to the United States, especially the import tariff of Chinese electric vehicles increased to 100%, which also caused concern in Germany, Sweden and other countries.

    During a visit to Frankfurt, Germany, U.S. Treasury Secretary Janet Yellen tried to enlist the European Union in tackling China's so-called "excess capacity." She claimed that if China's growing manufacturing power was not addressed in a united way, the industries of the United States and its Western Allies would be at risk. At the same time, she defended her country's tariff increases, saying they were in response to China's production capacity threat, not anti-China policy, and that the move was "strategic and targeted".

    However, the European Union has been less than enthusiastic about the US initiative. European Commission President Ursula von der Leyen made it clear at a campaign debate in Brussels that the EU would not follow the United States in imposing tariffs on China. Instead, they plan to go beyond Washington's "blanket tariffs" - a "tailor-made" tariff strategy against China.

    According to the Wall Street Journal, she suggested that any tariffs eventually imposed by the EU would be lower than the 100 percent tariffs that the United States has imposed on Chinese electric vehicles.

    Von der Leyen is seeking a second term as European Commission president less than a month before European Parliament elections. During the debate, she stressed that she did not believe there was a trade war going on with China, but was working on "de-risk rather than decoupling." At the same time, the New York Times reported that German officials are cautious about taking drastic measures, fearing that it will affect the position of German automakers such as BMW and Volkswagen in the Chinese market. German Chancellor Scholz and Swedish Prime Minister Ulf Christsen have both expressed a position of safeguarding the stability of global trade, arguing that it would not be wise to disrupt global trade.

    Commenting on the tariffs, Chinese Foreign Ministry spokesman Wang Wenbin said the United States continues to politicize economic and trade issues and it is wrong to increase tariffs. This practice not only pushes up the cost of imported goods, placing a greater burden on US businesses and consumers, but also destabilizes global production and supply chains. According to Moody's estimates, American consumers bear the vast majority of the cost of the tariffs, resulting in higher household expenses. Several European politicians have also voiced their opposition to the tariffs, arguing that they are bad for global trade. Wang urged the United States to abide by WTO rules and immediately lift tariffs on China, and warned that China would take necessary measures to defend its rights and interests.