China: 10% Tariffs on US Cars Impact GM, Ford, and Mercedes SUVs

China has imposed an additional 10% tariff on vehicles with larger engines imported from the U.S., effective February 10, 2025. This move comes after both countries failed to reach an agreement regarding the general import duties imposed by Trump’s administration on Chinese goods, according to Bloomberg. The new tariff applies to goods including vehicles with engines larger than 2.5 liters, raising the total tax burden to 25%, as reported by CCTV. Exports of such vehicles are minuscule compared to the number of cars produced locally by companies like General Motors through joint ventures. Last year, manufacturers shipped about $3.1 billion worth of large-engine vehicles from the U.S. to China, according to customs data. This additional tariff will affect automakers such as GM and Ford, which already face challenges in China as local drivers shift towards electric vehicles made by domestic manufacturers like BYD. GM recorded over $5 billion in charges and write-offs last year related to its troubled operations in China.