Trade dispute - EU punitive tariffs on e-cars from China come into force
Starting midnight, provisional EU additional tariffs on electric cars from China must be deposited as a security measure. The payment is due when an electric car arrives at a European port.
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. However, whether they actually have to be paid depends on whether a political solution with China is found by early November.
- Germany, a key player in the EU's automotive industry, expressed concerns about the looming trade dispute with China, as it could negatively impact the sales of electric cars from brands like BYD.
- Brussels is closely monitoring the situation, as the additional tariffs on Chinese electric vehicles could potentially shift the balance in the EU's trade of vehicles with China.
- The EU's decision to impose provisional tariffs on Chinese electric cars also affects the EU-China Comprehensive Agreement on Investment, which aims to boost trade and investment between the two giants.
- In response to these measures, China's Ministry of Commerce initially announced a suspension of its security deposit requirements for European imported vehicles, but later reconsidered and decided to maintain the policy, threatening further trade complications.
- Despite the ongoing trade dispute, prominent German automotive companies like BMW and Daimler are still investing heavily in China, hoping for a resolution that would prevent any significant disruption to their operations.
- As the EU and China continue negotiations, some experts suggest that the EU might consider a green car trade agreement, offering concessions for electric car exports in exchange for reducing subsidies in the Chinese automotive industry.
