EU imposes high tariffs on Chinese electric cars

2024-10-30 07:32:00, Kosova & Bota CNA

The European Union has decided to raise tariffs up to 45.3% on electric vehicles made in China. The decision comes after high-profile investigations that have caused a split between the bloc and retaliation from Beijing.

More than a year has passed since the start of the subsidy investigation, the European Commission will impose additional tariffs ranging from 7.8% on the US brand Tesla, to 35.3% on the Chinese firm SAIC, on top of the standard EU tariff of 10% for imported cars.

The additional tariffs were officially approved and published in the EU's Official Journal on Tuesday, meaning they will come into force on Wednesday.

The commission, which oversees the bloc's trade policy, has said the tariffs are necessary to combat what it says are unfair subsidies, including preferential financing and other financial aid, as well as land, batteries and valued raw materials. below the market price.

The EU says the additional capacity of 3 million Chinese electric vehicles a year is double the bloc's market. Given the 100% tariffs in the United States and Canada, the most likely market for these electric vehicles is Europe.

China's EU Chamber of Commerce said it was deeply disappointed by the bloc's "protectionist" and "arbitrary" move and was dismayed by the lack of substantial progress in negotiations to find an alternative to the tariffs.

This year, Beijing launched its own investigations into EU imports of cognac, dairy and pork products, an apparent sign of retaliation. China has also challenged the EU's temporary measures at the World Trade Organization.

European car companies are facing an influx of low-cost electric vehicles from Chinese rivals. The Commission estimates that Chinese electric cars account for 8% of the European market, compared to 1% in 2019 and could reach 15% in 2025. The Commission says that the prices of Chinese electric cars are typically 20% lower than those of cars European electric.

The EU's stance towards Beijing has hardened over the past five years. The bloc sees China as a potential partner in some fields, but also as a competitor and rival. EU member states do not agree on tariffs for electric vehicles. Germany, the EU's largest economy and top carmaker, spoke out against the tariffs in a vote this month in which 10 EU members supported them, five voted against and 12 abstained./ Voa