EU Imposes Punitive Tariffs on Chinese Electric Cars in Response to Alleged Subsidies

In a move to protect its domestic electric car industry, the European Union has imposed punitive duties of up to 37.6 percent on Chinese electric cars, which will take effect on Friday. The decision is based on subsidies that Chinese car manufacturers have received, which the EU considers to be unfair. Although the new tariffs are temporary for now, they will be in place for four months. During this period, discussions between China and the EU regarding customs will continue.

The temporary tariffs range from 17.4 to 37.6 percent, similar to the Commission’s preliminary decision announced in June. If Chinese electric cars are imported into Europe after the tariffs come into effect, they will be subject to punitive duties on top of the current 10 percent import duty. There are no retroactive duties for cars already imported before this decision.

The decision affects three Chinese electric car manufacturers, with varying additional duty levels set for each: BYD faces a tariff of 17.4 percent, Geely a tariff of 19.9 percent, and SAIC a tariff of 37.6 percent respectively. Other brands that cooperated with the EU investigation will have a duty of 20.8 percent while non-cooperating companies will face the same 37.6 percent tariff as other brands that did not cooperate with the investigation.

China has threatened to respond to these tariffs by imposing restrictions on European products