EU Commission imposes up to 37.6 percent additional duty on e-cars from China
Background of the decision are allegations that Chinese manufacturers are benefiting from comprehensive subsidies, which comes at the expense of European manufacturers. A commission investigation confirmed this in mid-June, therefore the provisional additional tariffs were announced. Until early July, negotiations were still being held with Chinese authorities and manufacturers.
"Consultations with the Chinese government have intensified in the past few weeks," the commission stated on Thursday. The vice-president of the commission responsible for trade, Valdis Dombrovskis, also acknowledged this in his exchange with Chinese trade minister Wang Wentao.
The tariffs are now initially lower than initially announced. For the Chinese manufacturer BYD, they are supposed to be 17.4 percent, 19.9 percent is planned for Geely, and 37.6 percent for SAIC. Companies like BMW or Tesla will have to calculate with a tariff of 20.8 percent on average when exporting from China to the EU.
The German automotive industry, as well as the federal government and Federal Chancellor Olaf Scholz (SPD), view the additional tariffs critically. They fear direct impacts on domestic companies and potential countermeasures from the Chinese side - up to an open trade war. Their hope now lies in further talks with Beijing.
According to industry estimates, Chinese-made electric cars account for almost 22 percent of the European market, compared to barely three percent three years ago. Chinese brands currently account for eight percent of the electric cars sold in the EU.
- The EU Commission announced provisional additional duty on imported cars from China due to allegations of subsidies benefiting Chinese manufacturers at the expense of EU ones, with rates ranging from 17.4% for BYD to 37.6% for SAIC.
- The EU Commission also mentioned that consultations with Chinese authorities and manufacturers have intensified regarding these additional tariffs, with the vice-president of the commission, Valdis Dombrovskis, acknowledging this during his exchange with Chinese trade minister Wang Wentao.
- These additional duties are expected to have a significant impact, with companies like BMW and Tesla calculating with an average tariff of 20.8% when exporting from China to the EU.
- Meanwhile, Chinese-made e-cars currently account for almost 22% of the European market, with brands like BYD and Geely having a combined market share of over 8%, according to industry estimates.
- The EU Commission's decision to impose these additional duties on Chinese imports has been met with criticism from the German automotive industry, the federal government, and Federal Chancellor Olaf Scholz, who fear potential countermeasures from China and negative impacts on domestic companies.
