The European Union has implemented duties on electric cars imported from China.
Just like the US, the European Union is now putting tariffs on imported Chinese electric cars. The EU claims that these cars are hurting the European automobile industry. The tariffs will be put on three manufacturers - BYD, Geely, and SAIC (the state-owned Chinese partner of Volkswagen). The rates vary: 17.4% for BYD, 20% for Geely, and a hefty 38.1% for the state-owned Chinese Volkswagen partners consortium SAIC. The EU Commission cites the damage these cars are causing to the European industry as justification for these tariffs. Tensions are high as China has warned it won't stand for these increased tariffs, threatening retaliation. This move by the EU could violate market rules and be counterproductive. European automakers have been vocal in their opposition to this move, fearing retaliation by China.
With this decision, the EU is following in the footsteps of the US, which recently increased its own tariffs on Chinese electric cars to 100%. China had responded by threatening to take strong measures to protect its own interests. The European Union's move was deemed to be in violation of market rules and against the interests of the EU. With these latest tariffs, European automakers are concerned about the potential retaliation from the most important market for them, China.
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- BYD, Geely, and SAIC, three Chinese automobile manufacturers, are now subject to higher tariffs on their electric cars imported into the EU, following the US's lead in protecting its own industry.
- The EU's decision to impose punitive tariffs on imported electric cars from SAIC, BYD, and Geely has caused concern among European automakers, as retaliation from China could negatively impact their sales in the vast Chinese market.
- China, a significant export market for European electric car manufacturers like BYD, Geely, and SAIC's EU-based partners, has warned against these increased tariffs, further escalating tensions between the two trading blocs.
