New EU tariffs on Chinese electric car makers

EU Raises Tariffs on Chinese Electric Vehicles

The European Union has increased tariffs on Chinese electric vehicles to protect its motor industry. Tariffs range from 17.4% to 37.6%, adding to the existing 10% duty. This move could elevate the prices of electric vehicles in the EU, impacting consumers.

The EU suspects “unfair subsidization” leading to lower prices for Chinese EVs. The tariffs affect Chinese brands, as well as Western firms operating in China. This move is expected to balance the market and reduce Chinese imports.

In response, some Chinese firms plan to localize production in the EU to bypass tariffs. Winners like BYD face a lower charge of 17.4%, while brands like SAIC endure a 37.6% tariff. The EU’s aim is to encourage investments in the EU and protect local manufacturers.

China heavily invested in the EV industry, with exports driving profits. However, with global tariffs affecting its export strategy, China may face economic challenges. The EU tariff move could further strain trade relations with major partners.