The European Commission declared on Wednesday that, starting early next month, it will impose tariffs as high as 48% on Chinese electric vehicles.
The European Commission has imposed fresh duties of its own on Chinese electric vehicles, batteries, solar panels, steel, aluminum, and medical equipment, approximately one month after President Joe Biden did the same.
The Commission declared on Wednesday that starting early next month, it would impose extra taxes on imported Chinese electric vehicles (EVs) ranging from 17% to 38%. The duties will be added to the 10% tariff that now applies to all Chinese electric cars (EVs). This means that some vehicles may have duties as high as 48%.
“As part of its ongoing investigation, the Commission has provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidization, which is causing a threat of economic injury to EU BEV producers,” the European Union stated in a news release.
The bloc formally informed SAIC Motor Corp., BYD Co., and Geely Automobile Holdings Ltd. of the impending duties on July 4, which is a reference to America’s Independence Day.
The group claims that the additional individual tariff amounts add up to:
- BYD: 17.4%;
- Geely: 20%;
- and SAIC: 38.1%.
According to the press release, manufacturers who were not included in the Commission’s sample would be subject to a tax rate of 21%, while manufacturers who declined to assist with the inquiry would be subject to a duty rate of 38.1%.
A Chinese Ministry of Commerce spokesman has swiftly responded in the interim. They pleaded with the bloc to change its mind on the additional EV charges and deal with the trade and economic disputes through negotiation and consultation.
The spokesman added that the EU’s action puts China’s rights and interests in the EV industry in jeopardy and causes bottlenecks in the global auto industry supply chain. Beijing, they said, would “resolutely” take all necessary steps to protect the rights and interests of Chinese companies, and it would keep a careful eye on the situation.
The EU’s action shields domestic manufacturers against Chinese competitors who have been undercut by a deluge of inexpensive EVs.
The bloc is now waiting. that China might be about to take retaliatory action.
Last year, GreatGameIndia reported that, on Wednesday, Biden’s Energy Secretary Jennifer Granholm testified to the Senate Armed Services Committee that all US military vehicles will be electric by 2030.
