The measure could raise the price of Chinese electric vehicles across the EU, making them less affordable for European consumers
The European Union has raised tariffs on Chinese electric vehicles (EVs) as Brussels moves to protect the bloc’s auto industry.
Additional duties on individual manufacturers range from 17.4% to 37.6%, which is in addition to the 10% duty already in place on all electric cars imported from China.
The measure could raise the price of electric vehicles across the EU, making them less affordable for European consumers.
This movement also constitutes major blow to Beijing, which is already in a trade war with Washington. The EU is the largest overseas market for China’s EV industry, and the country is relying on high-tech products to help revitalize its economy.
EU officials say this increase in imports has been fueled by “unfair subsidisation”, which has allowed Chinese EVs to be sold at much lower prices than those produced in the bloc.
China has denied this accusation from the US and the EU: that it is subsidizing excess production to flood Western markets with cheap imports.
The new tariffs take effect Friday, but are currently temporary while an investigation into Chinese state support for the country’s electric vehicle makers continues. They are most likely to be finally imposed later this year.
So who are the potential winners and losers in this trade dispute?
It’s not just Chinese brands that are affected by the move. Western companies that make cars in China have also come under scrutiny from Brussels. The number of electric vehicles sold by Chinese brands across the EU rose from just 0.4% of the total electric vehicle market in 2019 to nearly 8% last year, according to figures from major environmental group Transport and Environment (T&E). ) based in Brussels.
But not all Chinese-made EVs will be hit equally by the new tariffs.
They were calculated based on estimates of how much state aid each firm received, while companies that cooperated with the European investigation saw tariffs cut. Based on these criteria, the European Commission has imposed separate duties on three well-known Chinese electric vehicle brands – SAIC (37.6%), BYD (17.4%) and Geely (19.9%).
Source: Skai
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