EU imposes tariffs on Chinese electric cars

Brussels -No backtracking on duties on Chinese electric cars: on the contrary, the European Commission announced the introduction of trade tariffs on all Chinese imports related to eco-friendly four-wheelers. Whether it’s brands from the People’s Republic or European brands that manufacture in China to sell the finished product within the single market, it makes no difference: starting tomorrow (July 5), there will be an extra tax on everything that arrives on EU territory.

The EU executive slightly downwardly recalculates the taxes announced on June 12, but the substance does not change. From now on, it’s a EU-China trade war. There will be an individual duty of 17.4 percent for BYD cars, 19.9 percent for Geely, and 37.6 percent for SAIC. Other BEV producers in China, which cooperated in the investigation but were not sampled, are subject to the 20.8% weighted average duty. The duty for other non-cooperating companies is 37.6%. Tariffs that come on top of the 10 percent duties already in place. 

European tariffs will remain provisionally for four months, until early November, the deadline by which to reach a mutually agreed solution. Contacts with Beijing have intensified in recent weeks, but not to the point that the Commission would abandon introducing trade defense measures, no longer seen as postponable. The Commission found public subsidies along the entire BEV value chain and concluded that thanks to these supports, ‘made in China’ products literally invaded the EU market. The market share of Chinese battery-powered four-wheelers increased from 3.9 percent in 2020 to 25 percent thanks to these subsidies.

The Brussels initiative aims to bring the Asian partner to the table and negotiate a solution in line with World Trade Organization (WTO) rules. If there is no agreement by early November, trade defense measures from provisional could become permanent, meaning imposed for five years, possibly extendable, which the Commission would like to avert.

“Tariffs are a means to an end,” Eric Mamer, head of the European Commission’s spokesman service, said. “We want a solution,” which is why “we want dialogue with the Chinese.” Brussels is imposing duties to force the People’s Republic to review its trade policy. “There are industrial and employment interests, and our investigation has shown that there is damage to European interests” from China’s policy of subsidies on electric cars. ‘We want fair competition,’ Mamer cuts short.