HS Code:
Internal combustion engines (HS Code: 8407-8408) encompass a broad category of machinery that includes reciprocating piston engines and rotary engines, primarily used in vehicles, industrial machinery, and power generation. These engines convert fuel into mechanical energy through combustion processes and are critical to sectors such as automotive, marine, and manufacturing. This category includes engines for cars, motorcycles, aircraft, and industrial applications, as well as parts and components for maintenance and assembly.
Total Trade Volume
USD 220 billion
Data from 2022
Source
United Nations Comtrade Database
USD 45 billion
20.5% of total trade of total trade
Increasing
USD 38 billion
17.3% of total trade of total trade
Stable
USD 30 billion
13.6% of total trade of total trade
Increasing
USD 25 billion
11.4% of total trade of total trade
Increasing
USD 15 billion
6.8% of total trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
25% (imposed by certain developing countries on luxury vehicle engines)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA or USMCA)
Shift towards hybrid and electric alternatives
Declining demand for traditional internal combustion engines in passenger vehicles, particularly in Europe and North America, as governments push for net-zero emissions by 2050.
2022
Increased demand in developing economies
Growing industrialization and automotive sectors in Asia and Africa are driving demand for affordable internal combustion engines for commercial and industrial use.
2022
Technological advancements in fuel efficiency
Innovations in engine design and materials are extending the lifecycle of internal combustion engines, especially in heavy-duty and marine applications.
2021
The European Union introduced stricter Euro 7 emission standards, requiring significant investments in cleaner internal combustion engine technologies.
November 2022
Increased production costs for manufacturers exporting to the EU, potentially reducing competitiveness of non-compliant engines.
Phase One trade agreement between the US and China reduced tariffs on certain engine components, boosting bilateral trade in this sector.
January 2023
Improved market access for US manufacturers in China, leading to a projected 5% increase in exports.
Japan announced a national strategy to develop hydrogen-based internal combustion engines as a transitional technology towards decarbonization.
March 2023
Potential shift in R&D focus, with long-term implications for traditional fuel-based engine trade.