China May Institute Higher Tariffs on Imported Cars

China is strengthening threats of instituting higher tariffs on imported cars, specifically those with more than 2.0-liters of displacement. The move could harm European auto makers importing cars into China at the same time as China has been responsible for a significant amount of their sales. 

The threats come as the EU and China stage a tariff war on each other's goods. The EU instituted tariffs on Chinese solar cells, and China responded with tariffs on European wine. 

China claims that the higher tariffs come as an answer to complaints that foreign automakers are selling cars at a loss to gain a larger portion of the Chinese market. However, it seems that the tariff war is playing a large part as well.

The German luxury automakers have the most to lose from the tariffs because their luxury sedans have been incredibly popular in China. Half of MercedesMercedes-BenzGermany, 1924 > present197 models
9852 photos
33 videos
and BMW'sBMWGermany, 1918 > present87 models
8471 photos
43 videos
sales in China come from imported models.

China could institute the extra tariffs as soon as September.

Source: Automotive News Europe