Higher tariffs will be imposed on electric cars imported from China.
On Tuesday, August 20, the European Commission presented a proposal to introduce permanent tariffs on electric cars imported from China to the European Union. If EU member states do not object, and if Beijing does not offer a satisfactory solution to the EU authorities, the regulations will come into force by October 30 and will remain in effect for five years.
The anti-dumping duties would apply to all electric vehicles manufactured in China, including those produced by European companies. The rates could reach up to 36.3%. The reason behind the European Commission’s move is the financial support provided by the Chinese government for the production of electric vehicles, making them significantly cheaper than those produced in the European Union. As a result, European manufacturers are facing difficulties competing in the market. An EU official informed on Tuesday in Brussels that talks with Beijing over an amicable resolution to the tariff issue are still ongoing, but no agreement has been reached so far. “The ball is now in China’s court,” the official emphasized.
Currently, the proposed tariffs are 17% for vehicles from BYD, 19.3% for those from Geely, and 36.3% for cars produced by SAIC. Companies that cooperated with the authorities during the investigation into unfair competition will be subject to a 21.3% rate, while those that did not cooperate will face the highest rate of 36.3%.
Tesla, which produces cars in Shanghai, may benefit from a reduced tariff. As the only electric car manufacturer with factories in China, Tesla has requested an exemption from the tariff. Under the European Commission’s proposal, which still needs approval from member states, electric vehicles produced by Tesla in China and imported to the EU would be subject to a 9% tariff. The Commission confirmed that Tesla received significantly fewer subsidies from the Chinese government compared to Chinese electric vehicle manufacturers that were the subject of Brussels’ investigation.
China dominates as the world’s largest producer of electric vehicles. In 2023, global exports of these vehicles from China rose by 70%, reaching a value of $34.1 billion. The European Union is the main market for Chinese electric cars, accounting for nearly 40% of China’s exports. Last year, EU countries purchased Chinese electric cars worth a total of €3.5 billion, marking a nearly 40% increase compared to the previous year. This significant growth has raised concerns in Brussels, as the prices of Chinese electric cars are typically about 20% lower than those of cars produced in Europe.
Source: reuters.com