China Slaps Anti-Dumping Duties on the U.S. Made Autos

The Chinese government has imposed anti-dumping and anti-subsidy duties on certain United States vehicle imports, the country's commerce ministry announced last week. The new tariffs, which took effect on Dec. 15, 2011, will be applied for two years to passenger cars and sports utility vehicles with engine capacities of 2.5 liters or more.

China said an investigation into U.S. auto imports found domestic vehicle manufacturers had suffered "substantial damage" due to dumping and subsidies. The anti-dumping penalties range from 2 percent to 21.5 percent while the anti-subsidy tariffs will be set at a maximum 12.9 percent, the ministry said.

"According to the U.S.-China Business Council, the U.S. exported $4.5 billion worth of vehicles to China in 2010, an increase of over 134 percent from the previous year," the Detroit Free Press reports. Agence France-Presse says the new tariffs will affect vehicles produced by General Motors, Chrysler Group, BMW Manufacturing and Mercedes-Benz US International, American Honda Motor and Ford Motor Co.

"The new tariffs, totaling up to nearly 22 percent of the import prices, will probably have a mainly symbolic function, rather than reducing the already skimpy sales of such vehicles in China," the New York Times explains.

Last week's move was the latest in a series of trade disputes between the world's two largest economies.

"China and the U.S. are at odds over a slew of trade issues," the Associated Press notes. "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."