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EU punitive tariffs on e-cars from China are in force

The EU is carrying out its threat to impose tariffs on e-cars from China - but initially only as a safeguard.

Penalty duties in the form of a security deposit are now being levied on e-cars from China....
Penalty duties in the form of a security deposit are now being levied on e-cars from China. (archive picture)

Start of tariffs on e-cars - EU punitive tariffs on e-cars from China are in force

Starting from now, provisional EU additional tariffs on electric cars from China must be deposited as a safety measure. The payment is due when an electric car arrives at a European port.

Specifically, the following tariffs apply to Chinese manufacturers: 17.4% for BYD, 19.9% for Geely, and 37.6% for SAIC. For other manufacturers, 20.8% is planned, and for companies that did not cooperate during the investigation, a penalty tariff of 37.6% would apply. These tariffs are added to the existing customs duty of ten percent.

The provisional tariffs are the result of an investigation by the EU Commission, which showed that the value chain for electric cars in China is heavily subsidized. In addition, imports from the country would threaten the industry in the EU.

The decision on whether the provisional tariffs must actually be paid will be made within the next four months. During this time, the EU Commission plans to submit a proposal for long-term tariffs. However, this can be rejected by a majority of EU states. If no long-term tariffs are imposed and a solution with Beijing is found, the currently applicable provisional tariffs do not have to be paid, according to the information.

The action of the EU authority met with criticism in Germany. According to the German Automobile Industry Association (VDA), the potential damage from additional tariffs is likely to be higher than the potential benefit, especially for the domestic industry. Government politicians have also expressed critical views on the additional taxes.

  1. The German Automotive industry association (VDA) has voiced criticism towards the EU Commission's decision to impose provisional tariffs on electric cars from China, specifically on manufacturers like BYD, Geely, and SAIC.
  2. EU Member States, including Germany, are currently evaluating whether the provisional tariffs on Chinese electric cars, such as those from Geely International, should be permanently implemented.
  3. Advocates for the European Union argue that the additional tariffs on Chinese imports, including electric cars from SAIC, are necessary to protect the competitive position of the European automotive industry in the face of heavy subsidies in China.
  4. Amidst this trade dispute, EU Commission is preparing a proposal for long-term tariffs on Chinese electric cars, a move that could potentially see China imposing reciprocal tariffs on EU imports, including cars from European manufacturers like BMW or Volkswagen.
  5. The European Union plans to maintain a close watch on the impact of the provisional tariffs on cars from China, such as those produced by BYD, and adjust its tariff strategy accordingly based on the analyses of the EU Commission in Brussels.
  6. If a solution to this trade issue between the EU and China is found, the current provisional tariffs, including the 17.4% levy on BYD cars, would no longer be applicable, as per the information available.
  7. European car owners may be affected by this tariff dispute, as they might have to pay a security deposit or higher prices for electric cars from manufacturers like Geely or SAIC, due to the added customs fees and additional tariffs.

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