AUTONEWS

EU tariffs of up to 35% on Chinese electric cars are now in effect

The tariffs to be applied to Chinese electric car manufacturers, of up to 35% for five years, to avoid unfair competition in the face of subsidies from China, were published this Tuesday in the Official Gazette of the Union, coming into force at midnight.

“The European Commission today adopted definitive countervailing duties on imports of battery-powered electric vehicles from China for a period of five years,” announced the trade institution's spokesperson, Olof Gill, in Brussels.

At the same time, “the EU and China continue to work hard to find an alternative and mutually acceptable solution,” the official added, noting that “any such solution will have to be effective in resolving the issue identified during the investigation, as well as compatible with the rules of the World Trade Organization”.

This Tuesday's adoption comes after, in early October and following an investigation into Chinese state subsidies to electric car manufacturers, the European Commission achieved support from most EU member states, except Germany, to apply these tariffs. . Portugal abstained in this vote, in which 10 countries voted in favor, five against and 12 abstained.

In this investigation, Brussels concluded that there was, in fact, illegal support from Beijing, which would have enabled these vehicles to quickly enter the EU market at a much lower price than those of EU competitors.

This means that the community executive will, with a view to leveling competition in the EU, apply tariffs of 35.3% to SAIC, 18.8% to Geely and 17% to BYD, as well as 20.7% (weighted average) to other companies that collaborated in the research and 35.3% of those that did not.

In addition, the institution will grant an individual duty rate to Tesla as an exporter from China, set at 7.8%, and the North American electric car giant has its largest factory in the world in Shanghai.

In addition to these new tariffs, the already existing 10% rate applied to the import of electric vehicles of any origin is added, which amounts to a maximum of up to 45% in the worst case scenario for manufacturers of these vehicles that want to operate in the EU, taking into account the new tariffs.

This means, for example, that an electric MG (a brand that belongs to SAIC) until now only paid this 10% customs tariff, but after the investigation and application of the tariffs it will pay 45.3%.

At this point, Chinese electric cars represent around 8% of those sold in Europe and are sold at a much lower price, around 20%, than those of EU competitors.

It is the community executive that represents the EU in the field of trade policy.

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