EU imposes tariffs up to 38.1% on Chinese electric vehicles, report claims

EV Tariff: The European Union has been considering imposing tariffs on Chinese electric vehicles imported into Europe for several weeks.

Jun 12, 2024 - 22:53
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EU imposes tariffs up to 38.1% on Chinese electric vehicles, report claims

The European Union (EU) has reportedly imposed tariffs of up to 38.1 percent on Chinese-made electric vehicles (EVs) being imported into Europe. The move is expected to draw sharp retaliation from Beijing. The move comes after the US raised import duties on various China-made products, including EVs, during the administration of US President Joe Biden.

Media reports have said that several Chinese EV companies doing business in Europe have been officially informed by the EU about the imposition of duties. The duty imposed varies for each company. The duty on BYD electric cars will be 17.4 percent, Geely electric cars 20 percent, and SAIC models 38.1 percent. These will be implemented from July 4.

Europe's move comes several weeks after it investigated subsidies allegedly received by Chinese EV companies from the Chinese government. It is said that this subsidy allows Chinese EV brands to keep costs under control. And then introduce their products in Europe at prices that are much more competitive than the price of equivalent electric models from local European brands.

However, European Commission President Ursula von der Leyen has officially said that she fears that European markets will be flooded with Chinese EVs. China has already warned of retaliation. In which Beijing can impose tariffs on products imported from Europe.

The main concern in Europe is to preserve the local automobile sector against a flood of Chinese EV brands. Which not only provides relatively durable and feature-rich devices at reasonable prices. Many say that European brands cannot compete on pricing with their Chinese competitors.

However, the high tariff is likely to have an impact on non-Chinese firms such as Tesla, which builds electric vehicles in China and exports them to Europe. Other businesses, such as Mercedes and Volkswagen, are concerned that China's reprisal may have an impact on business in its Asian region, which is the world's largest automotive market. Several European brands have previously stated that China accounts for 30% of their total global sales.

While China accuses tariffs as barriers to free and open trade, many Western manufacturers are also warning against Europe imposing tariffs due to fears of Chinese retaliation.

Muskan Kumawat Journalist & Writer