EU punitive tariffs on Chinese electric cars take effect  

Admin I Wednesday, October 30, 2024

 

BRUSSELS – EU tariffs of up to 35.3% on battery-powered electric vehicles from China entered into force on Wednesday, after being published in the EU Official Journal, a register of EU laws, late on Tuesday.

The tariffs are set to be in force for five years in addition to the European Union’s standard 10% import levy on cars.

Chinese companies affected include BYD hit with tariffs of 17%, Geely at 18.8% and SAIC at 35.3% according to commission.

The measures came into force a day earlier than expected as the last official step in the process – the regulation’s publication in the EU Official Journal – was initially seen as happening on Wednesday, but occurred on Tuesday evening instead.

Tensions over Chinese exports have been rising in recent months, with the United States and the EU accusing Beijing of supporting sectors like green technologies with massive state subsidies.

Manufacturers in China that cooperated with the EU probe were subjected to a 20.8% tariff. Non-cooperative electric car producers were hit with 35.3%.

The EU commission announced the extra tariffs in July after an investigation accused Beijing of subsidizing their domestic electric car manufacturers and thus distorting the market in the EU.

The punitive trade measures come despite strong opposition from Germany, amid concerns over retaliatory actions which could hurt the country’s major car industry.

German carmakers, which include brands like Volkswagen, BMW and Mercedes, generally opposed the tariffs as they have invested in the Chinese market and have relied heavily on sales there.

Brussels and Beijing have so far been unable to find a solution to the issue of Chinese subsidies for electric vehicles (EV) and tariffs at the negotiating table despite long-running talks.

The commission has repeatedly stressed that a negotiation outcome must eliminate the influence of harmful subsidies. China has said it wants to find a negotiated solution.