China Considering Cutting Import Tariffs By About Half

China’s State Council is weighing proposals to cut import duties by about half, according to Bloomberg which cites people with direct knowledge of the matter.

According to the sources, the levy will be reduced on imported cars to 10 or 15 percent, from the current 25 percent. The move is expected to give a boost to foreign automakers, especially premium brands like BMW, Lexus and Porsche.

An announcement on the decision could be made as early as next month. China has responded to U.S. President Donald Trump’s tariff threats with similar force, although at the same time it has indicated at the loosening of its market rules.

A lower tariff would benefit premium car brands as it would make their imported cars much more competitive against locally manufactured rivals. Last week China announced it will allow foreign car companies to own more than 50 percent of their local ventures, helping them to capture a greater share of the world’s largest car market.

Cars made in the U.S. will also benefit, such as Tesla, but they may still face an additional barrier as China has threatened to impose an additional 25 percent import duty specifically on U.S.-made vehicles.

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  • Harry Nimmergut

    Why bother? Based on the Beijing Auto Show, Chinese customers have about 10,000 vehicle choices to choose from.
    I still fail to understand where all this money for luxury vehicles is coming from. Wasn’t that long ago they were all riding bikes.

    • Belthronding

      ..and arabs used to ride camels but how about now?

    • assassingtr

      more or less, Chinese people very much care about brands and imaging. Also to push this fact, while Chinese manufactures are catching up, or have caught up in many ways; there is still the looming stigma that Chinese cars just don’t have the same quality as imports (which is likely very true.) The 25% right now is blatant protectionism and keeping them from being one of the worlds biggest luxury car markets.

    • pxsupply

      More than 20 years ago China had one million Dollar millionaires… There are a lot of people in China with money and it is growing fast.

  • Autoexperte

    25 % import duty, is still the most extreme protectionism this world has to offer

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