by Philip Blenkinsop

BRUSSELS (Reuters) -The European Union has decided to raise customs taxes on electric vehicles manufactured in China, a measure decided after a year-long investigation into public aid granted by Beijing which divided the member countries of the community bloc and exposes the EU to possible reprisals from the Chinese government.

In addition to the standard 10% tax on motor vehicles imported into the EU, the European executive will implement surcharges ranging from 7.8% for the American manufacturer Tesla, which produces vehicles in China, to 35 .3% for the Chinese group SAIC.

A senior EU representative said the surcharges were formally approved on Tuesday. The decision is expected to be published in the Official Journal later today, or on Wednesday, for entry into force the following day.

The European Commission presents the surcharges as necessary to counter what it presents as unfair subsidies from Beijing, between loans at preferential rates and raw materials and batteries at prices below the market.

Brussels highlights that China’s available production capacities, at three million electric vehicles per year, are twice the size of the European market. While the United States and Canada have implemented 100% customs tariffs for Chinese electric vehicles, they will likely be sent to Europe.

Beijing, which describes the surcharges as protectionist and capable of harming bilateral relations, opened its own investigation this year concerning imports of several European products, including cognac, a step which amounts to retaliation.

(Philip Blenkinsop, with contributions from Qiaoyi Li in Beijing; Jean Terzian, edited by Tangi Salaün)

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