China institutes new tariffs on US cars

China will slap additional duties on US car imports in response to “dumping and subsidies,” the Financial Times reported. Duties on autos with engines larger than 2.5 liters will vary between 2% and 21.5% depending on the model and remain in effect for two years. The taxes will likely have the largest impact on makers of sports utility vehicles which are manufactured in the US and then exported to China, especially those made by BMW (BMW.FRA) and Daimler (DAI.FRA), whose shares fell 5% and 3% respectively on the news. The new duties are the latest in a series of ongoing trade spats between the US and China. Last week the US said it would take China’s anti-dumping measures aimed at US poultry exports to arbitration at the WTO. That dispute in turn arose after the US blocked tire imports from China, a measure upheld by the WTO late last year.