China slaps additional tariffs on U.S. cars: New challenges for American manufacturers

On Wednesday, the Chinese government announced new trade restrictions, raising tariffs on imported cars from the United States. The move was in response to the failure of a U.S.-China deal on a general tariff on Chinese goods, which was implemented under former President Donald Trump.

Starting February 10, additional tariffs of 10% will be applied to large American cars, especially those with engine displacements of more than 2.5 liters, according to a report by Chinese state broadcaster CCTV. The addition brings the total tariff rate to 25%.

According to Bloomberg, the volume of such car exports from the United States to China is small compared to the production of companies with local partnerships, such as General Motors Co. Customs data show that the value of exports of such vehicles reached about $3.1 billion last year.

The new tariff restrictions imposed by the Chinese side could significantly complicate the position of American automakers in the Chinese market, where they have already faced significant losses due to the growing popularity of local electric vehicles. For example, General Motors last year announced costs and write-offs worth more than $5 billion related to production in China.

Experts believe that companies such as GM and Ford, which are actively operating in the Chinese market, could be particularly vulnerable to the new tariff restrictions.