Chinese Electric Vehicle Market News

China Imposes New Tax on American Goods in Response to Trump Tariffs.
Yesterday, the Chinese government announced a new 34% import tax on all goods from the United States, including vehicles, as a countermeasure to the recent tariff policies introduced by the Trump administration. Set to take effect on April 10, this move will significantly raise the cost of American sports cars like the Corvette C8 and the new 5.0-liter Mustang. The combined tax rate on the Corvette C8 Z06 is expected to reach 200%, pushing its price in China above $220,000, not including dealer markups.
Back in February, China had already increased tariffs by an additional 10% on U.S.-made vehicles with engines larger than 2.5 liters. This measure also affected German luxury models manufactured in the U.S., such as the BMW X6, X7, and Mercedes-Benz GLS-Class, which are among the top sellers in China’s luxury SUV market. In 2024, the Mercedes-Benz GLS sold 13,985 units, securing second place, while the BMW X7 recorded 7,331 units sold, placing it third.
The price of the Ford F-150 has also been heavily impacted by the new tariff, though its sales in China were already declining. In 2023, 4,954 units were sold, dropping to just 2,227 in 2024—a 50% decrease. Beyond pricing, this slump is largely attributed to the rise of Chinese luxury off-road models like BYD’s Yangwang U8 and GWM’s Shanhai Pao (also known globally as the GWM Cannon Alpha), which are gaining traction among domestic buyers.
The 34% import tax will deal a major blow to the import dealership business at Tianjin Port, China’s largest hub for imported luxury cars. In 2019, the port handled an annual import volume of 150,000 vehicles. However, with the rise of domestic luxury brands like Yangwang, sales plummeted to approximately 39,300 units in 2023. The latest tariffs will undoubtedly deliver yet another severe setback to an already struggling market.