American car buyers in China are bracing for unprecedented price hikes as new retaliatory tariffs are set to take effect, potentially altering the country’s auto market dynamics.
In a sharp escalation of trade tensions, China has announced a steep 34% increase in import duties on all goods from the United States, including automobiles.
The move, effective April 10, is a direct response to Washington’s recent tariff measures and is expected to send the prices of American-made vehicles in China soaring. Analysts warn the new tariffs could reshape consumer choices and significantly impact American automakers’ market share in the region.
American sports car enthusiasts are expected to be hit hardest. Flagship models like the Chevrolet Corvette C8 and the Ford Mustang GT, powered by a robust 5.0-liter V8 engine, will see massive price increases.
For instance, the Corvette C8 Z06 will face a total tax burden reaching an astonishing 200%, pushing its pre-dealer price in China beyond $220,000 USD.
This new 34% hike follows an earlier Chinese tariff imposed in February, targeting vehicles with engines larger than 2.5 liters with an additional 10% duty.
That measure had already affected not only U.S. brands but also European automakers like BMW and Mercedes-Benz, which manufacture SUVs in the United States.
Models such as the BMW X6, X7, and Mercedes-Benz GLS-Class—strong performers in China’s premium SUV market—were directly impacted. In 2024, Mercedes-Benz sold 13,985 GLS units in China, ranking second in the category, while the BMW X7 sold 7,331 units, placing third.
Sales of the Ford F-150, once a symbol of American automotive muscle, have also taken a hit. In 2024, only 2,227 units were sold in China—a steep drop from 4,954 units in 2023.
While higher taxes play a role, growing interest in high-end Chinese off-roaders is a major factor. Brands like BYD and GWM are gaining traction, especially with models like the Yangwang U8 and Shanhai Pao (globally known as GWM Cannon Alpha).
Import dealerships, especially those operating through Tianjin Port—China’s key hub for imported luxury cars—are under pressure. The port saw imports peak at 150,000 vehicles in 2019, but volumes declined to 39,300 in 2023.
The added 34% tariff could deliver another blow, prompting dealers to rethink pricing, inventory, and reliance on American brands amid a changing market landscape.