Volkswagen, Europe’s biggest carmaker, warns extra duties will not strengthen Europe’s auto industry.
The European Union is imposing additional duties of up to 37.6 percent on imported electric vehicles (EVs) from China. Despite Beijing’s warnings of a potential trade war, the EU cited “unfair” state subsidies as the reason for the tariffs, effective Friday but for a provisional four-month period.
In response to an investigation into Chinese EV manufacturers undercutting European competitors with subsidies, the EU may propose long-term duties following the provisional period. Concerns focus on the influx of inexpensive EVs due to the subsidies.
China has expressed intentions to protect its interests, potentially with retaliatory tariffs. Meanwhile, the US has already raised duties on Chinese EVs, and Canada is considering similar actions.
Volkswagen strongly criticized the proposed tariffs, warning that they would not benefit the European car industry. The EU estimates Chinese brands could capture up to 15% of the EU market by 2025, with prices significantly lower than EU-made models.