EU Imposes Provisional Import Duties on China-Made EVs

by | 4. Jul 2024 - 12:20 | Politics

Starting Friday, punitive tariffs will apply in the European Union for electric vehicles produced in China. The measure will initially apply provisionally for four months, by which time a final decision must be made, as the EU Commission announced on Thursday. The regulation would then apply for five years. The Commission accuses the Chinese manufacturers of benefiting from state subsidies along the entire value chain, from raw material extraction to battery production and assembly, and subsequently becoming a threat to European manufacturers.

The additional tariffs vary depending on the manufacturer. They amount to 17.4 percent for BYD, 19.9 percent for Geely, and 37.6 percent for SAIC, so they have been adjusted slightly. Other manufacturers must expect surcharges of 20.8 percent and those who have not cooperated in the Commission’s investigation, which has been ongoing since October, 37.6 percent.

The payments will initially be secured by a guarantee, the form of which will be determined by the customs authorities of the individual member states. The payments would only be collected should the punitive tariffs be definitively enacted.

The German Institute for the World Economy in Kiel (IfW Kiel) expects the tariffs to reduce imports of Chinese vehicles by 42%. However, car prices would only be slightly affected in the long term.

The German Association of the Automotive Industry criticizes the measure, arguing that it makes it more difficult to ramp up electromobility and achieve the Paris climate targets and harms European consumers and companies. Instead, the association says a constructive dialog between the EU and China is required, and access to critical raw materials must be secured in the long term.

Photo: iStock/ismael juan

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