Arguing about cost - Europe warns China about potential taxes on specific electric vehicles.
The European Union (EU) plans to impose high temporary tariffs on particular electric vehicles from China. This affects models from makers BYD, Geely, and SAIC, according to a statement by the EU Commission this past Wednesday. The commission states that BYD faces a 17.4% import tax, Geely faces 20%, and SAIC, the state-owned Chinese Volkswagen partner consortium, faces 38.1% duty.
The rationale for this action is due to the EU's belief that Chinese electric car imports are negatively impacting the European auto industry. This decision follows in the footsteps of the United States, which recently boosted tariffs on Chinese electric vehicles to 100%. European car manufacturers firmly oppose these tariffs, fearing potential retaliation on their most significant market, China.
Whether manufacturers must fork over the heavy 38.1% tariffs depends on whether a solution can be reached with China. China is given until July 4 to seek a resolution. This deadline was given at Germany's insistence.
China Issues Caution to the EU over Electric Car Tariffs
The Chinese government has warned the EU about placing tariffs on electric vehicles from China. "In the end, this would be detrimental to the European Union," said a Chinese Foreign Ministry spokesperson on Wednesday. The EU's ongoing anti-subsidy investigation on Chinese EVs is termed "protectionism," and, presumably, a way to justify the imposition of tariffs by the commission.
Read also:
- In response to the EU's plan to impose tariffs on Chinese electric vehicles, Beijing has expressed concern, stating that such actions could harm the EU's economy.
- The EU Commission's decision to impose high temporary tariffs on electric vehicles from manufacturers like BYD, Geely, and SAIC has attracted the attention of the Beijing government, which is currently engaging in diplomatic discussions to avoid a penalty duty.
- The Chinese Foreign Ministry has criticized the EU's anti-subsidy investigation on Chinese electric vehicles, labeling it as protectionist and potentially leading to a penalty duty, which could negatively impact EU-China trade relations.
