CHINA will impose a two-year anti-dumping and countervailing duties on some United States-made vehicles from today, the Ministry of Commerce said yesterday, as bilateral trade tension between the world's two biggest economies looks set to rise.

The tariffs, targeting sedans and sport-utility vehicles with engine capacity above 2.5 liters, will range from 8.9 percent to 12.9 percent for General Motors, the ministry said in a statement.

Chrysler Group, which imports Jeep SUV models to China, will face punitive duties of 6.2 percent to 8.8 percent.

The US division of Daimler AG's Mercedes-Benz will face 2.7 percent, BMW's US unit 2 percent, and 4.1 percent for Honda's US unit.

The ministry said its decision was based on a May 5 ruling after an investigation found that dumping and subsidy practices of the US automakers have damaged the domestic industry substantially.

But the affected carmakers expect their overall business performance may not be significantly affected because domestic production remained their key strategy in the world's largest auto market.

GM said in a statement yesterday that it was working with its partners to gauge the impact of China's decision and to "seek a solution consistent with a constructive global trade environment."

The carmaker, which imports US-made Buick Enclave SUV and several Cadillac models, said imports account for less than half of 1 percent of its domestic production in China.

The ministry's action came after China opened a trade barrier investigation into US policy and subsidy support for renewable energy at the end of November in a tit-for-tat action after the US started an anti-dumping and countervailing duty probe into Chinese solar products.

Trade rows between China and the US have also extended to other industries, including chicken products, steel and wind power equipment, over the past few years.

Source:shanghaidaily