Sourсe: CNBC
The EU «has given the green light» to additional tariffs on electric cars imported from China — they come into effect today and will be in force for the next 5 years.
China’s previous negotiations with Brussels were unsuccessful, but they will continue to try to reach an agreement on prices.
The size of the tariffs will vary depending on the brand: the highest will reach 35.7% — for those who did not cooperate in the investigation; while manufacturers who met the EU’s demands will receive a tariff of 20.7% or less (for those who, like Tesla, submitted a «reasonable request for individualized examination»).
The EU believes that additional tariffs (previously a 10% duty was in effect) are necessary to compensate for the effects of Chinese subsidies: Beijing is generously funding its domestic electric vehicle sector, which allows local manufacturers to sell cars at lower prices than their European competitors. As a result of these actions, sales of Chinese electric vehicles in Europe have grown at an extraordinary pace: their market share grew from 1.9% in 2020 to 14.1% in the second quarter of 2024.
The European Commission emphasizes that China’s production capacity of 3 million electric vehicles per year is twice the size of the EU market. Therefore, given 100% of tariffs imposed on electric vehicles from China in the United States and Canada, the most obvious market for them is Europe.
Source: European Commission, Euro News, Forbes
