China to Impose Punitive Duties on Large Cars and SUVs Imports from the U.S.

China will impose punitive duties of up to 22 per cent on large cars and SUVs exported from the US, China's Commerce Ministry said, the latest in a series of trade disputes between the world's two largest economies.

The new duties take aim at vehicle exports valued near $4 billion (Dh14.68 billion) and come at an awkward time for US-China relations, with China's currency and trade policies becoming a focus of criticism for US presidential candidates.

Vehicles affected by the new duties include the Cadillac Escalade made by General Motors, the Jeep Grand Cherokee from Fiat SpA affiliate Chrysler Group and luxury SUVs from Daimler AG's Mercedes and BMW.

Chinese officials said the US-built SUVs and luxury sedans were being dumped on the Chinese market and causing "substantial damage to China's domestic industry". Vehicle exports to China had already been subject to a 25 per cent tariff and the new tariff will be in addition to that duty.