The EU has finally decided to impose tariffs on Chinese electric vehicles, with a maximum of 47.6%!

Zheng Yi

2024-07-05 20:20Published in Shandong

The European Union (EU) has decided to impose tariffs on Chinese-made electric vehicles, which will be implemented from July 5. The EU will impose tariffs of 17.4 to 37.6 percent on Chinese-made electric vehicles. From 10% to 47.6%.

In October last year, the European Commission (EC) began a countervailing investigation into the import of Chinese electric vehicles. The purpose of the countervailing duty investigation is to determine whether low-priced electric vehicles produced in China are receiving subsidies from the Chinese government to engage in unfair competition in the European electric vehicle market.

But the survey itself is controversial, as the EU's electric vehicle industry is also subsidized by local governments. But the EU is only targeting Chinese companies.

According to the results of the survey, the Chinese government has subsidized the production of electric vehicles to car brands that are currently sold locally in Europe. Chinese government subsidies have had an impact on the European EV market.

Depending on whether or not they cooperate with the investigation, the additional tariff rate increase in the existing tariff rate will apply to different Chinese companies. SAIC, which does not cooperate with the EU Executive Committee's investigation, will increase its price by 37.6% from the previous year, and apply the maximum tariff rate of 47.6%. Geely Automobile, which owns BYD and Volvo Cars, will raise their prices by an additional 17.4% and 19.9%, respectively, to assist in the investigation. In other words, SAIC is the biggest victim, and BYD and Geely are also greatly affected.

European automakers, which have production plants in China, have also inevitably raised tariffs. Tesla, BMW, Renault and other countries that produce electric vehicles in China and export them to the EU have raised their tariff rates by 20.8%.

But not all countries agree on tariffs against the EU. German automakers have spoken out against the EU's tariffs on Chinese-made electric vehicles. Mercedes-Benz, BMW, and Volkswagen Group currently have high sales in the Chinese market. It is expected that the EU tariffs will lead to retaliation from China.

Compared to China's 15% tariff rate applicable to European electric vehicles, this is a difference of up to 3 times. German automakers are concerned that China, a major market, could be hampered by its export path.

In fact, it is not only Chinese brands that have suffered, but Hyundai Motor Group has also been indirectly affected by this measure. Kia's partner in China, Yueda Kia, started production of the EV5 for export at its plant in Yancheng, Jiangsu Province, China, in April this year. Kia aims to export 200,000 vehicles a year by 2026. The company plans to export vehicles to more than 50 countries, including Europe. It is expected that this measure will inevitably adjust EV5 exports to Europe.

In addition, the tariff increase is also temporary, and will only be applicable for four months until November this year. After that, if more than 15 of the 27 EU countries vote in favor, the tariffs on Chinese-made electric vehicles will be converted into fixed tariffs and will be implemented in the long term.

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