HS Code:
The category 'Having engines with more than 4 cylinders but not more than 6 cylinders' typically falls under HS Code 8407 or 8408, depending on whether the engines are spark-ignition or compression-ignition. This category includes internal combustion engines often used in automotive applications, such as passenger vehicles, light trucks, and certain industrial machinery. These engines are critical components in mid-range vehicles, balancing power and efficiency, and are a significant segment of the global automotive supply chain. Trade in this category is influenced by factors like fuel efficiency standards, emission regulations, and the shift towards electric vehicles.
Total Trade Volume
Approximately $15 billion USD
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
$3.2 billion USD
21.3% of total trade of total trade
Stable
$2.8 billion USD
18.7% of total trade of total trade
Decreasing
$2.5 billion USD
16.7% of total trade of total trade
Increasing
$1.5 billion USD
10.0% of total trade of total trade
Increasing
$1.0 billion USD
6.7% of total trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
25% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Japan EPA)
Shift towards hybrid and electric vehicles
Reduction in demand for mid-range internal combustion engines as manufacturers pivot to greener technologies, affecting export volumes from traditional automotive hubs.
2021-2023
Rising demand in emerging markets
Increased exports to countries in Southeast Asia and Africa, where mid-range vehicles with 4-6 cylinder engines remain popular due to cost and infrastructure constraints.
2020-2022
Stricter emission regulations
Manufacturers are compelled to innovate, leading to higher production costs and potential trade barriers for non-compliant engines.
2019-2023
The European Union introduced stricter Euro 7 emission standards, impacting the production and trade of 4-6 cylinder engines. Non-compliant engines face higher tariffs or outright bans.
July 2023
Manufacturers in exporting countries like Japan and South Korea are investing in cleaner technologies, potentially increasing costs but also opening new market niches.
Revised rules of origin under the USMCA have increased local content requirements for automotive parts, including engines, affecting trade flows between the US, Canada, and Mexico.
January 2023
Boosts production in Mexico and the US, while potentially reducing imports from non-USMCA countries.
China has implemented subsidies and policies to encourage domestic production of automotive engines, reducing reliance on imports.
March 2022
Decreased import volumes from traditional exporters like Germany and Japan, reshaping trade patterns in Asia.