EU imposes a 38% duty on Chinese electric cars — with special provisions for Tesla

Starting next month, Chinese electric cars imported to the EU will receive an increased tariff of up to 38.1%, in addition to the current 10%.

However, such harsh tariffs will not apply to all cars: according to CarscoopsSAIC, the owner of MG, will receive the maximum 38.1%, while Geely vehicles will receive 20% and BYD electric vehicles — 17.4%.

Last year, 1 in 5 electric vehicles sold in Europe was made in China — in 2024, according to forecasts, the figures will increase to 1 in 4.

Those automakers that have not been investigated by the EU will receive a tariff of up to 21%, but will be able to request a review with the hope of getting lower numbers. The European Commission has also provided for special treatment for Tesla, which has a gigafactory in Shanghai, and «can receive an individually calculated duty rate after a reasonable request from».

The new tariffs will be applied from July 4. Previously, the EU investigation concluded that the price chain of battery electric vehicles in China «benefits from unfair subsidization by» and stated that it is in their interest to impose temporary countervailing duties on BEVs imported from the country.

As a reminder, a few weeks ago, the United States imposed even stricter tariffs on imported Chinese cars — with an increase from 25% to 100%.

As noted by ReutersThe Chinese Ministry of Commerce said it would closely monitor developments and take «all necessary measures to protect the legitimate rights of Chinese companies». Beijing has already launched an anti-dumping investigation into imports of mainly French brands; in April, a law was passed to strengthen China’s ability to counter US and EU duties.

Some experts believe that the immediate effect of the additional duties will be very small in economic terms, as the EU has already imported about 440,000 electric vehicles from China in 12 months (as of the end of April), worth €9 billion.