Tag Archives: EU tariffs

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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

News

EU reduced tariffs on vehicles produced in China

Last year, the European Commission launched an investigation into the privileged position of electric vehicles produced in China due to subsidies. This resulted in the introduction of additional tariffs on vehicles manufactured in China (37.6%), and manufacturers that cooperated during the investigation paid lower tariffs (20.8%). However, the EU decided to reduce tariffs on some car manufacturers like Tesla from 20.8% to just 9%.

After reviewing the business report for July, it was determined that Tesla received less government aid than other firms that make cars in China, so the EU agreed to reduce the tariff. However, this did not mean that the tariff would be removed completely as the company was found to still be getting batteries below market value, which is one of the ways car manufacturers receive help from China. Other ways to help are cheap land, grants and loans at lower rates. This still gives them an advantage over cars made by companies in other parts of the world.

Also, some other car manufacturers will now pay lower tariffs, such as the British brand Mini. Although the company refused to cooperate in the investigation, the EU still decided to reduce tariffs on their vehicles from 37.6% to 21.3%. The tariff was also reduced on the vehicles of some Chinese companies: BYD (17.4 to 17 percent), Geely (19.9 to 19.3 percent), and SAIC (37.6 percent to 36.6 percent).

Source: Reuters