The already nervous relationship between the world’s two largest economies, United States and China, is going to become even more tense after Chinese authorities announced that new duties on US-made cars imported into the country are going to be imposed.

China’s Commerce Ministry announced the move through a statement on its official website, citing the “substantial damage to China’s domestic industry” perpetrated by cars and SUVs built in the States. The decision that will affect major US carmakers General Motors, Chrysler, Ford, and also foreign automakers with production facilities in the US, including BMW, Honda and Mercedes-Benz. However, the new policy will be more punishing for the American manufacturers as GM will have to face duties ranging from 8.9 to 12.9 %, Chrysler’s duties range from 6.2 to 8.8 % while BMW and Mercedes-Benz will be hit with 2 and 2.7 % duties respectively.

The move is believed to be a retaliation against the US government that filed 12 trade cases against China since they joined the WTO in 2001.

via | Reuters

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