Image source, Getty Images
- author, Mitchell Labiak
- role, Business reporter
Prices of Chinese electric cars could rise in the European Union after politicians called the vehicles a threat to the country’s industry.
The report “tentatively concluded” that Chinese electric vehicle (EV) makers would face tariffs from July 4 if talks with Chinese authorities fail to reach an effective solution.
The EU’s announcement comes as it continues to investigate the flood of cheap, government-subsidized Chinese cars into the bloc.
China argues the tariffs violate international trade rules and has called the investigation “protectionist.”
EV makers that cooperate with the investigation launched in October by the European Commission, which oversees the EU, will face an average tariff of 21 percent, while those that do not will be hit with a 38.1 percent tariff.
Meanwhile, specific fees apply to the following three companies:
- BYD: 17.4%
- Geely: 20%
- SAIC: 38.1%
Non-Chinese auto companies that produce some EVs in China would also be affected, including EU-based companies like BMW.
The committee said Tesla made a specific request and may receive an “individually calculated tariff rate.”
These charges would be on top of the current 10% tariffs imposed on all electric vehicles made in China.
The decision has drawn criticism not only from China, but also from politicians and industry players in the EU.
“The anti-subsidy investigation is a classic example of protectionism,” said Yin Jian, a spokesman for China’s foreign ministry.
He added that the tariffs could also undermine “China-EU economic and trade cooperation, and the stability of global automotive production and supply chains.”
The tariffs will officially come into effect in November unless a majority of EU member states – the 15 countries that account for at least 65 percent of the bloc’s population – vote against them.
German Transport Minister Volker Wissing said there was a risk of a “trade war” with China.
“The European Commission’s punitive tariffs are hitting German companies and their core products,” he wrote on X (formerly Twitter).
The European Automobile Manufacturers’ Association (ACEA) said “free and fair trade” was essential for Europe’s car industry to remain competitive.
But they added that this is just one piece of the puzzle when it comes to figuring out how to encourage greater adoption of electric vehicles.
Mercedes-Benz and Stellantis, which own several brands including Citroen, Peugeot, Vauxhall and Fiat, also spoke, stressing the importance of free trade.
“We do not support any measures that would lead to the division of the world,” Stellantis said. [of trade]” “.
Some EU car companies are calling for an EU-wide industrial policy to cope with global competition.
