Despite all warnings from business, the European Commission is imposing punitive tariffs of up to 38.1 percent on certain electric cars China. The Brussels authorities announced this on Wednesday.
The tariffs, which are expected to take effect in July, would be 17.4 percent for BYD, 20 percent for Geely and 38.1 percent for SAIC. According to the information, whether manufacturers actually have to pay the tariffs depends on whether another solution can be found with China. The Commission gives China until July 4th to do so.
The tariff rate is currently 10 percent. At the end of 2023, the Brussels authority initiated a competition investigation against China over allegedly illegal subsidies for electric cars. The EU Commission accuses the People’s Republic of distorting competition with subsidies for electric car manufacturers. Commission President Ursula von der Leyen (65) sees Europe under pressure to act to prevent China from flooding the European market with cheap electric vehicles. According to the Commission, prices are typically around 20 percent lower than models manufactured in the EU.
Car bosses warn of punitive tariffs
There is little support for this from the European auto industry. German car manufacturers in particular are heavily dependent on sales in China – and therefore fear retaliation from Beijing. Top managers of BMW, Mercedes and Volkswagen have warned against imposing import duties on vehicles from China. According to HSBC estimates, German car manufacturers generate 20 to 23 percent of their global profits in the world’s second largest economy. In addition, a large proportion of the cars imported into the EU from China come from European manufacturers.
China does not want to accept higher tariffs from the EU. The Foreign Ministry in Beijing announced on Wednesday that it would consider all measures to resolutely defend its own interests. Special tariffs by the European Union on electric cars would violate market rules.