Controversy surrounding costs. - The European Union warns of imposing taxes on specific electric vehicles manufactured by China.
EU Commission mulls over imposing significant interim tariffs on specific electric cars manufactured in China. The automobiles from companies like BYD, Geely, and SAIC might be affected, according to a statement on Wednesday by the EU Commission. It is reported that a 17.4 percent tax will be placed on BYD, 20 percent on Geely, and 38.1 percent on Chinese Volkswagen partner consortium SAIC, as per news agency Reuters.
The organization justified this action with the claim that electric car imports from China adversely affect the European automobile sector. This move is reminiscent of the US's recent hike in tariffs on Chinese electric vehicles to a whopping 100 percent. European carmakers have vocally opposed the tariffs, fearing possible retaliatory actions from their most significant trade partner, China.
It remains to be seen if manufacturers must pay these hefty tariffs. This hinges on the resolutions reached with China, with whom they have until July 4 to work out a solution, according to the EU. This deadline has been given under the pressure of the German government.
China reprimands the EU on tariff decisions
Previously, the Chinese government had warned the EU against imposing such tariffs on electric vehicles. "In the long run, this will harm the EU's interests," said a representative from the Chinese Foreign Ministry on Wednesday. The anti-subsidy probe underway by the EU Commission is referred to as "protectionism," the spokesperson added, suggesting it's being used as a pretext for introducing discriminatory practices.
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- In response to the EU's threat of tariffs, Beijing has criticized the EU Commission's decision, deeming it as protectionist and potentially harmful to EU's interests.
- Amidst the EU's consideration of imposing penalties on Chinese electric car manufacturers, EU carmakers have expressed concerns about potential retaliatory actions from China.
- The EU Commission is considering imposing hefty tariffs on specific electric vehicles manufactured by Chinese companies like BYD, Geely, and SAIC, following warnings of taxation on their vehicles due to perceived negative impacts on the European automobile sector.
