China plans to impose up to 25% tariffs on imported large-engine cars, escalating trade tensions with the EU and US. This move targets European and US carmakers such as Mercedes-Benz, BMW, and Toyota.
‍

‍

The potential tariffs come as the EU nears a decision on imposing duties on Chinese electric vehicle imports.
‍

‍

China's retaliatory stance may also affect European wine and dairy products amid ongoing trade disputes.
‍

‍

The China Chamber of Commerce to the EU said it was informed about the potential move by “insiders” and that the levies would have a “significant” impact on relations.
‍

‍

Shares of European carmakers that stand to be most affected by a potential tariff slipped yesterday, with Mercedes-Benz Group AG and BMW AG both dropping.

‍

Trade tensions between the EU and China have soared since the probe was announced — and they’re unlikely to ease anytime soon.