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Global Tariffs, Categorized

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📦 Passenger transports

Passenger transports

HS Code:

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Overview

The Passenger Transports category, primarily covered under HS Code 87 (Vehicles other than railway or tramway rolling stock, and parts and accessories thereof), includes vehicles designed for the transport of passengers such as cars, buses, and motorcycles. This category is a critical segment of global trade, reflecting consumer demand, industrial production capabilities, and economic conditions worldwide. It encompasses a wide range of vehicles from luxury cars to mass transit buses, playing a significant role in both personal and public transportation sectors.

Total Trade Volume

USD 750 billion

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

10.5%

Highest Rate

25% (imposed by certain developing countries to protect domestic industries)

Lowest Rate

0% (under free trade agreements like EU-Japan EPA)

Common Restrictions

  • Import quotas in certain countries
  • Stringent emission standards and safety regulations
  • Local content requirements for manufacturing
  • Non-tariff barriers such as certification and licensing

Market Trends

Shift towards electric vehicles (EVs)

Increased demand for EV passenger cars due to environmental regulations and consumer preference for sustainable transport options, driving innovation and investment in battery technology.

2021-2023

Rise in autonomous vehicle technology

Growing integration of self-driving technology in passenger transports, influencing trade patterns as countries with advanced tech gain competitive advantage.

2022-2023

Supply chain disruptions

Global semiconductor shortages and geopolitical tensions have led to reduced production and trade volumes, increasing costs for manufacturers and consumers.

2021-2022

Recent Developments

EU Implements Stricter Emission Standards

The European Union introduced new Euro 7 emission standards for passenger vehicles, requiring manufacturers to meet stricter limits on pollutants.

January 2023

Increased production costs for manufacturers exporting to the EU, potential rise in prices for consumers, and accelerated shift to electric vehicles.

US-China Trade Agreement on Auto Parts

A new bilateral agreement reduced tariffs on certain auto parts and passenger vehicles between the US and China, aiming to stabilize trade relations.

March 2023

Boosted trade volume between the two countries, lowered costs for US consumers, and increased export opportunities for Chinese manufacturers.

Japan's Push for Hydrogen Vehicles

Japan announced subsidies and infrastructure development for hydrogen-powered passenger vehicles as part of its green energy strategy.

June 2023

Potential growth in niche market for hydrogen vehicles, influencing global trade patterns as Japan seeks to lead in this technology.