"China Considering Car Tariffs To Retaliate Against U.S. And EU Moves; China Chamber Of Commerce To The EU Says 'China May Consider Increasing Temporary Tariff Rates On Imported Cars Equipped With Large-Displacement Engines'" - SCMP
Portfolio Pulse from Benzinga Newsdesk
China is considering raising tariffs on imported cars with large-displacement engines in response to recent US and EU trade actions against Chinese-made electric vehicles. This move could impact US and European carmakers and further strain trade relations.
May 21, 2024 | 6:30 pm
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NEUTRAL IMPACT
The potential tariff increase by China could have mixed effects on Chinese stocks, represented by FXI, as it may protect domestic industries but also escalate trade tensions.
FXI includes Chinese companies that may benefit from protective tariffs, but the broader trade tensions could create market uncertainty.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
The potential tariff increase by China could negatively impact the broader US stock market, as it may lead to increased trade tensions and affect companies with significant exposure to China.
SPY includes a wide range of US companies, some of which have significant exposure to China. Increased tariffs could lead to broader market volatility.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Tesla could be impacted by China's potential tariff increase on imported cars with large-displacement engines, as it may affect the company's sales in China.
Tesla imports some of its models to China, and higher tariffs could make these vehicles more expensive, potentially reducing sales.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
European stocks, represented by VGK, could be affected by China's potential tariff increase on imported cars, as it may impact European carmakers and escalate trade tensions.
VGK includes European companies, including carmakers that may be directly impacted by higher tariffs on their exports to China.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 70