The European Union moved Wednesday to hike tariffs on Chinese electric vehicles, escalating a trade dispute over Beijing’s subsidies for the exports that Brussels worries is hurting domestic automakers. The European Commission, the EU’s executive arm, said it would impose provisional tariffs that would result in Chinese automakers facing additional duties of as much as 38%, up from the current level of 10%.
Quick Read
- The European Union announced Wednesday that it will hike tariffs on Chinese electric vehicle (EV) imports, escalating a trade dispute over Beijing’s subsidies.
- The European Commission stated that provisional tariffs would increase duties on Chinese EVs to as much as 38%, up from the current 10%.
- The commission has reached out to Chinese authorities to discuss the subsidies and seek resolutions.
- If discussions do not yield an effective solution, the new tariffs will take effect provisionally by July 4.
- This move is part of a broader trade dispute over China’s state support for green tech exports, including solar panels, batteries, and wind turbines.
- Imports of Chinese-made EVs to the EU have surged in recent years, including vehicles from Western brands with plants in China, like Tesla and BMW.
- EU officials argue that Chinese automakers, such as BYD and SAIC, are benefiting from massive subsidies, enabling them to undercut European car brands on price.
- The commission’s investigation found that China’s EV value chain benefits from unfair subsidization, posing a threat to EU BEV producers.
- Tariffs will vary by company: BYD will face an additional 17.4% charge, Geely (owner of Volvo) will incur 20% more, and SAIC will be hit with an extra 38.1%.
- Chinese Foreign Ministry spokesperson Lin Jian condemned the EU’s investigation as “typical protectionism” and vowed that Beijing would protect its legitimate rights and interests.
- Last month, U.S. President Joe Biden imposed significant new tariffs on Chinese EVs, advanced batteries, solar cells, steel, aluminum, and medical equipment, citing unfair competitive advantages due to Chinese government subsidies.
The Associated Press has the story:
EU hits Chinese EVs with tariffs, drawing stern words from Beijing
Newslooks- BRUSSELS (AP) —
The European Union moved Wednesday to hike tariffs on Chinese electric vehicles, escalating a trade dispute over Beijing’s subsidies for the exports that Brussels worries is hurting domestic automakers. The European Commission, the EU’s executive arm, said it would impose provisional tariffs that would result in Chinese automakers facing additional duties of as much as 38%, up from the current level of 10%.
The commission said it reached out to Chinese authorities to discuss the findings of its investigation into the subsidies and “explore possible ways to resolve the issues.”
“Should discussions with Chinese authorities not lead to an effective solution,” the new rates would take effect on a provisional basis by July 4, the commission said in a press release.
Electric cars are the latest flash point in a broader trade dispute over what Brussels says is China’s unfair state support for green tech exports that also include solar panels, batteries and wind turbines.
Imports of Chinese-made EVs to the European Union have skyrocketed in recent years. They include vehicles from Western brands that have auto plants in China, including Tesla and BMW.
But EU officials complain that Chinese automakers like BYD and SAIC are increasing market share and undercutting European car brands on price thanks to Beijing’s massive subsidies.
The commission said an investigation it opened last year into China’s EV subsidies found that China’s battery electric vehicle value chain “benefits from unfair subsidization, which is causing a threat of economic injury to EU BEV producers.”
The extra tariffs would vary by company. BYD would face an additional 17.4% charge. Geely, which owns Sweden’s Volvo, would be hit with a further 20%. For SAIC, it would be 38.1% extra.
Chinese Foreign Ministry spokesperson Lin Jian, speaking at a daily briefing, blasted the EU’s investigation as ”typical protectionism” and said Beijing would “take all measures necessary to protect our legitimate rights and interests.”
U.S. President Joe Biden slapped major new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment last month. Biden said that Chinese government subsidies ensure the nation’s companies don’t have to turn a profit, giving them an unfair advantage in global trade.
