China to levy 40 per cent tariff on US vehicles from July 6

According to the State Council, China is going to raise the import duty to 40 per cent on certain cars imported from the United States, with effect from July 6, 2018. The commission of tariffs and customs made this announcement early this week as part of an additional 25 per cent tariff recently imposed on the US exports of US$ 34 billion. This tariff is particularly in response to Washington’s decision to slap new tariffs on Chinese goods worth of US$ 50 billion late last week.

The commission said in a statement, "The US action violates the relevant rules of the World Trade Organization and runs contrary to the consensus reached in negotiations between the two parties. It damages the legitimate rights and interests of our country and people."

China’s tariff plan is going to affect 659 American goods worth of US$50 billion, while US$ 34 billion worth of goods will be subject to the 25 per cent tariff increase from July 6, 2018. The list of goods includes automobiles, aquatic, and agricultural products.

To avert the US-China trade war tensions, China, in May, had decided to cut the import duty on US passenger cars from the current 25 per cent to 15 per cent, with effect from July 1. This reduction of the duty was claimed as a concession to the Trump government and a boon to the US carmakers such as Tesla. It was also considered beneficial for European as well as Asian manufacturers, from Daimler to Toyota Motors.