Tag Archives: China

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EU decided: Additional tariffs of 35% on EVs imported from China

New EU tariffs of 35% on all imported electric vehicles made in China come into force in November. This is a definitive decision of the EU that was made after the vote of 27 member states.

Two years ago, the European Commission launched an investigation into the privileged position of electric vehicles produced in China due to subsidies. “These can also be vehicles from other manufacturers if they have used subsidies in China,” said Executive Vice President of the European Commission for an Economy Valdis Dombrovskis. In order to protect European car manufacturers, it was decided that EVs from China will be subject to an additional customs duty of 38.1%. However, the EU gave the companies a chance to cooperate in the investigation, so it was decided that those who accept cooperation will have temporary lower tariffs (20.8% instead of 21%), while those who refuse cooperation will have tariffs of 37.6 percent.

In the meantime, the European Commission completed an investigation that concluded that Chinese manufacturers receive large subsidies from the Chinese government, which destroys European manufacturers. Chinese authorities rejected the results of the investigation and threatened to impose tariffs on cars and food from the European Union.

Also, the European Union specified that any alternative to these tariffs, such as the minimum price, must comply with strict requirements, which are aligned with the rules imposed by the World Trade Organization (WTO).

It should be noted that some European manufacturers, such as BMW, Mercedes-Benz and Volkswagen, were against additional tariffs on EVs from China. Some members even asked for tariffs of 45%. However, the European Commission has announced that it will start a new round of negotiations with China in order to solve the problem for a long time.

Source: Reuters

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Fall in demand for Chinese EVs in Europe

For years, cheap EVs from China have been flooding the European market, destroying the competition, so the European Union has introduced additional tariffs on vehicles imported from this country, which are paying off. According to the latest data, demand for Chinese EVs has been declining for the past year and a half, and in August it fell by 50%.

For the second month in a row, the market share of Chinese manufacturers has been declining, and the data show that SAIC Motor is no longer the leader in Europe. This was also influenced by MG’s poor sales results (-65% in August), as the brand focused more on hybrid and plug-in hybrid cars. The new leader is BYD, which is one of the few that recorded sales growth (+10%).

According to some analysts, the biggest reason for the drop in sales is the additional tariffs that the European Union wants to impose on Chinese EVs. However, it should also be taken into account that the European market is currently facing a steady decline in the number of electric vehicles sold. Since the beginning of 2024, demand for EVs has fallen by 5.5 percent.

Car manufacturers will face stricter EU regulations on CO2 emissions in the coming year, as the current average emission limit for new vehicles should be reduced from 116 g/km to 94 g/km next year. European car manufacturers have once again called on Brussels to reconsider its climate goals.

Source: Reuters

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The EU is changing tariffs on EVs made in China

At the beginning of June, the EU announced additional tariffs of up to 38.1% on electric cars imported from China, but according to information from some media, that decision could be changed.

Currently, imported cars made in China have a 10 percent tariff. However, as of July 4, this rate will rise to as much as 38 percent in some cases. For example, BYD will pay 17.4 percent, Geely 20 percent, and SAIC, which with the help of former British brand MG is by far the biggest seller in Europe, will pay 38.1 percent. Other brands that were cooperative will pay a 21 percent duty, and those that refused will pay 38.1 percent.

In 2023, the European Commission launched an investigation into the privileged position of electric vehicles produced in China due to subsidies. “These can also be vehicles from other manufacturers if they have used subsidies in China,” said Executive Vice President of the European Commission for an Economy Valdis Dombrovskis.

According to Bloomberg, manufacturers that cooperated during the investigation will have lower tariffs (20.8% instead of 21%). However, those who refused to cooperate will have tariffs of 37.6 percent instead of the original 38.1 percent. It should also be noted that these tariffs are temporary and that the EU will make a new decision on permanent tariffs by the end of the year.

Source: Bloomberg