EU Imposes Tariffs on Chinese Electric Vehicles
BRUSSELS: In a move to combat the influx of cheap electric vehicles (EVs) into the European market, the European Union has decided to impose tariffs ranging from 17.4% to 37.6% on imports of electric vehicles made in China. This decision, announced on Thursday, is part of the escalating trade tension between the EU and Beijing.
However, these tariffs are provisional and there is a four-month window for further intensive talks between the two sides. The European Commission’s provisional duties are aimed at preventing the potential flood of low-cost EVs built with state subsidies, as warned by its president, Ursula von der Leyen.
The imposed rates are set to prevent unfair competition, particularly from Chinese automakers such as BYD, Geely, and SAIC. The EU has estimated that Chinese brands’ market share in the EU has risen significantly, posing a threat to European manufacturers.
Companies that have cooperated with the anti-subsidy investigation, including Tesla and BMW, will face lower tariffs compared to those that did not participate. China has expressed its concerns over the EU’s decision and may consider retaliatory measures on certain exports to China.
European policymakers are cautious about repeating past mistakes, such as with solar panels, where limited action resulted in the collapse of many European manufacturers. The EU initiated the anti-subsidy investigation into Chinese EVs last October to protect its market and ensure fair competition.
While these tariffs may have a modest impact on Chinese firms, they signify the EU’s commitment to safeguarding its domestic market and ensuring a level playing field for all automakers.
