The European Commission has announced new tariffs on Chinese electric vehicles due to what it calls “unfair” subsidies from the Chinese government. These new duties, up to 37.6%, will be added to the existing 10% import duties starting this Friday. The aim is to counteract the potential economic harm to European car manufacturers caused by these subsidies.
EU trade chief Valdis Dombrovskis stated that China should not retaliate against these tariffs, emphasizing the need to address the threat of cheap, state-subsidized electric vehicles flooding the market. China plans to take measures to protect its interests and is engaged in ongoing technical talks with the EU.
Not all Chinese EV manufacturers will be equally affected by the tariffs, with companies like Tesla and BMW facing lower tariffs due to their cooperation with the EU’s anti-subsidy investigation. The Commission aims to prevent a repeat of past crises and protect European manufacturers from being overshadowed by Chinese brands in the market.
Ultimately, the EU and China will be engaged in negotiations over the next four months to reach a resolution on the issue, with the possibility of definitive duties being imposed for five years. The US also plans to impose tariffs on Chinese EV imports, reflecting a broader trend of trade tensions in the global electric vehicle market.