Tough times ahead for American car makers in China.
On Wednesday, China's Ministry of Commerce said it would impose anti-subsidy and anti-dumping duties on imported cars made in the United States.
The announcement is the latest in a series of trade spats between the world's two largest economies.
Nick Edwards is the chief economic correspondent for Thomson Reuters in China.
CHIEF ECONOMICS CORRESPONDENT OF THOMSON REUTERS'S GREATER CHINA BUREAU, NICK EDWARDS, SAYING:
"There are trade tensions between U.S. and China. This is just one further example of how they could be demonstrated and the kind of action that you could see taken. The auto industry too, don't forget, very, very sensitive one for China. It employs a lot of people, got a major boost from the stimulus package from 2008, that stimulus is being wound back. The auto industry in China is suffering. China just finished its central economic work conference, most important economic planning meeting, the auto industry's high on its agenda. This is a significant step."
The duties will range from 2.0 percent to 21.5 percent and will take effect from Thursday December 15 for two years.
The ministry's statement said U.S. cars and sport utility vehicles benefited from subsidies and had been dumped into the China market, causing "substantial damage to China's domestic industry".
The move to impose tariffs on U.S. cars came weeks after the United States decided to probe sales of Chinese-made solar panels.
Deborah Lutterbeck, Reuters