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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

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EU imposes additional tariffs of up to 38.1% on Chinese cars

As was announced a few days ago, the EU introduced additional tariffs of up to 38.1% on electric cars manufactured in China. The decision comes after a long-term consideration of how to respond to the increasing pressure that cheap Chinese electric cars are putting on domestic European manufacturers.

A few days ago, Turkey imposed additional tariffs of 40% on Chinese cars, and before that, the United States also raised the tariff rate on imported cars from China from 25% to 100%. Of course, such decisions were condemned by the Chinese authorities, who announced countermeasures to protect their interests.

“We call on the EU to listen carefully to objective and rational voices from all walks of life, to immediately correct its wrong practices, stop politicizing economic and trade issues, and properly resolve economic and trade frictions through dialogue and consultation,” said Chinese Foreign Ministry spokesman Lin Jian at a regular press briefing.

In September 2023, the EU 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.

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.

This decision is valid until the end of the investigation (November), when the new customs tariffs will come into force for a period of five years.

Source: Reuters, Photo: Shutterstock

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EU introduces additional tariffs on vehicles from China

In September 2023, European Commission President Ursula von der Leyen announced that the EU is launching an investigation into the privileged position of electric vehicles produced in China due to subsidies. The investigation showed that the Chinese government subsidized cars exported to Europe in various ways, and in response the EU is considering the introduction of additional tariffs.

For a long time, Europe was looking for a way to protect domestic producers. Some suggested joining forces against the Chinese, such as the head of the Renault Group, Luca de Meo. It seems that the temporary decision on additional tariffs is the EU’s first move to protect domestic producers.

According to Automotive News Europe, the temporary tariff rates would apply from July, and European importers must report imports of Chinese electric vehicles through customs registrations. This means that retroactive customs clearance is inevitable.

The investigation also showed that imports from China increased by 14 percent (177,839 vehicles) compared to 2022, and if it continues, it is not doubtful that it could negatively affect employment and overall production. The Chinese Chamber of Commerce in the EU said it was disappointed by the decision and that the increase in imports was a reflection of the growing demand for electric vehicles.

Manufacturers are trying to resist the increasingly rapid Chinese conquest of the European market, and one of the ways is to continue producing cars with internal combustion engines. In February, Luca de Meo stated that Europe is facing major challenges and that the alienation and disorientation of the European automotive industry will lead to a structural trade deficit for Europe. He also warns that the phase-out of internal combustion engines, which is planned for 2035, could mean a decrease in the competitiveness of the European car industry. According to him, ICEs have been a protective barrier for Europeans for years, and now with the development of electric cars and the increased need for batteries, that protection is disappearing because the Chinese control 75 percent of global battery production.

Mercedes and Škoda have already announced that they will not give up ICE as long as there is demand. Other companies are expected to follow this path as well.

Source: Automotive News Europe