No cheap electric cars from China: punitive tariffs of up to 38.1 percent
The EU Commission is in favor of introducing punitive tariffs on Chinese electric cars. The measures are to come into effect as early as July. A surcharge of up to 38.1 percent is planned.
The European Commission has come to the conclusion that electric car manufacturers in China are receiving subsidies from the state that distort competition and has announced higher punitive tariffs on certain electric cars from China. The first concrete measures affect the manufacturers BYD, Geely and Saic.
BYD is to be subject to a special tariff of 17.4 percent, for Geely cars the punitive tariff is 20 percent, and SAIC electric cars are to be subject to 38.1 percent. The initially provisional regulation is to take effect from July 4, 2024. Until then, the European Commission wants to enter into negotiations with China and look for other solutions.
Punitive tariffs of up to 38.1 percent planned
It is not yet known how high the tariffs could be for other manufacturers. The EU’s investigations are ongoing. The level of tariffs also depends on the manufacturers’ cooperation with the EU. Car manufacturers such as Tesla or BMW/Minisome of which produce in China, would likely be affected by the punitive tariffs if the regulation comes into force on July 4.
With the provisional regulation, the EU is following the example of the USA, where tariffs have already been increased to 100 percent. This step is controversial, especially due to possible retaliatory measures from China. The ministry had already announced the day before that the People’s Republic would protect its own interests in such a case.
As a result of the introduction of punitive tariffs in the EU, countermeasures could also affect the European industry. German premium manufacturers in particular sell a large proportion of their vehicles in China. Mercedes Last year it was around 30 percent. One reason why the German car industry in particular is speaking out against the punitive tariffs. However, the measure is well received in other sectors of the German economy.
