China to Tax US-made Car Imports

Photo: American.com

(FiscalTimes.com) By Elaine Kurtenbach (AP) - China has imposed duties on imports of some U.S.-made vehicles, claiming damage from foreign automakers due to dumping and subsidies in the latest round of trade friction between the two countries.

The Commerce Ministry said Wednesday that the duties would be imposed for two years on imported cars and sport utility vehicles with engine displacements of over 2.5 liters.

The duties range from 2 percent to 21.5 percent.

The ministry's notice named General Motors Co., Chrysler Group Ltd., Mercedes - Benz U.S. International Inc., BMW's factory in Spartanburg, South Carolina and Honda of America Manufacturing Co. as among the companies affected.

China and the U.S. are at odds over a slew of trade issues. Beijing also has imposed tariffs on imports of U.S. chicken, among other products, while the U.S. has filed complaints against Chinese tariffs on steel and subsidies for wind power equipment.

In October, seven U.S. solar panel companies filed a federal trade complaint against Chinese companies they accuse of dumping solar products on global markets to depress prices.

U.S. trade officials have long complained that China's own subsidies to its auto industry, along with preferential access to cheap credit from state-owned banks, amount to unfair trade practices.

Read full story at FiscalTimes.com...