The European Commission (EC) has announced additional tariffs of up to 37.6 percent on imported Chinese electric vehicles (EVs), effective from Friday. This move comes atop the existing standard 10-percent duty on cars, marking a significant increase in trade barriers between the European Union (EU) and China.
Impact on Leading Chinese Manufacturers
Prominent Chinese EV manufacturers such as SAIC, Geely, and BYD, which have established a strong presence in the European market, are directly affected by these tariffs. The EC has specified individual duties for these producers: SAIC will face a 37.6 percent tariff, Geely 19.9 percent, and BYD 17.4 percent. These rates reflect the findings of the EC’s investigation into EV imports and alleged subsidies.
Broader Effects on the Chinese EV Industry
Chinese EV producers that participated in the EC investigation but were not individually sampled will be subject to a weighted average duty of 20.8 percent. Those that did not cooperate with the investigation face the maximum tariff of 37.6 percent. This broad application of duties raises concerns about the future of Chinese EV exports to Europe and the potential ripple effects on global supply chains.
Potential Strain on EU-China Relations
The new tariffs could strain the mutually beneficial cooperation between the EU and China in the automotive sector. Industry analysts warn that the increased duties may lead to higher prices for consumers and could hinder the adoption of electric vehicles in Europe, undermining environmental goals.
Looking Ahead
The Chinese government and EV manufacturers are expected to engage in dialogue with the EC to address these tariffs. Stakeholders on both sides are hopeful for a resolution that supports fair trade practices while continuing to promote the growth of the EV industry globally.
Reference(s):
EU tariffs hike on Chinese EVs to harm mutually beneficial cooperation
cgtn.com
