The European Union is set to impose additional tariffs of up to 38 percent on Chinese-made electric cars to protect regional manufacturers from unfair competition. The New York Times and Financial Times. The European Commission has already warned Chinese automakers of additional taxes that will be added to the existing 10 percent tariff on their electric vehicles, and will vary for each manufacturer. BYD and Geely vehicles will face tariffs of between 17.4 and 20 percent, while SAIC will face an additional 38 percent tax.
Prices for other carmakers vary depending on whether they cooperate with the ongoing EU investigation to Chinese government subsidies For EV manufacturers. Thanks to these subsidies, Chinese-made electric cars can be sold at significantly lower prices than their European counterparts. Chinese automakers that cooperate with the probe will be hit with an additional tariff of 21 percent, while those that don’t will be hit with a 38 percent tariff. The Financial Times European Commission member Margaritis Schinas said he was in contact with Chinese authorities to “explore possible solutions” to the problem. The new tariffs will take effect on July 4 if they cannot reach an agreement.
While the EU has said it is imposing additional taxes on Chinese electric cars to protect the bloc’s manufacturers, some officials and European automakers are opposing the move because they worry it could lead to retaliation from China. They’re particularly worried that China’s response will make electric cars more expensive in general, which in turn could alienate customers, especially those who aren’t yet convinced they should go electric.
The EU announcement comes a month later The US has quadrupled import tariffs on Chinese electric vehicles. It was part of a larger move by the U.S. government to curb China’s influence on the economy, while imposing additional taxes on Chinese-made semiconductors, solar cells, batteries and medical products.
