China retaliates against Trump’s auto tariffs with 10% duty on US vehicles and WTO complaint
China has responded to US president Donald Trump’s tariffs of 10% on all goods imported from China, in addition to the existing 100% tariffs on Chinese EV and battery imports, with tariffs of its own.
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China’s finance ministry said the country would add 10% tariffs to large vehicles and pickup truck imports from the US. China also lodged a complaint with the World Trade Organization (WTO), with the finance ministry stating that the imposition of tariffs by the US “seriously violates the rules of the WTO”.
In Automotive Logistics’ recent livestream on key logistics trends in 2025, Daniel Harrison, inhouse automotive analyst at Automotive Logistics said the impact on the automotive supply chain of the tariffs will be severe.
“The long-term impact of these tariffs will be serious, and could be comparable or even worse that the impact of Covid on supply chains,” he said. “The real issue with tariffs now is the uncertainty. If we knew for certain what will stick, businesses could then adapt to that.”
He said: “It’s not all doom and gloom though. There are still investments going on and there are still growth areas. The impact on logistics could lead in theory to job losses, consolidation, mergers and acquisitions and cancelled or delayed investments, but it could also lead to a more positive proactive response including investment in digitalisation, better visibility and transparency, scenario planning and new routes and flows.”
In his inaugural speech, Trump also claimed that China was operating the Panama Canal and said America is “taking is back”. It is not accurate that China operates the canal, although Chinese companies are involved in port operations, including the Panama Ports Company which is owned by Hong Kong company CK Hutchinson Holdings. Drought has been affecting shipping in the Panama Canal over recent years, and it is not clear yet if action by Trump’s administration to “retake” it could affect trade through the passage further. In response to Trump’s allegations, the Panamanian authorities have announced an audit of Panama Ports Company.