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12° Nicosia,
18 July, 2024
 

EU to impose up to 25% tax on imported Chinese EVs

The move targets excessive subsidies as European automakers face increased competition

Newsroom

The European Commission is set to notify car makers on Wednesday that it will provisionally apply additional duties of up to 25% on imported Chinese electric vehicles (EVs) starting next month, according to the Financial Times, citing sources familiar with the matter.

Analysts predict tariffs between 10% and 25% on Chinese EVs, a measure that may provoke retaliation from Beijing. The European Commission argues that Chinese EVs benefit from excessive subsidies.

The EU and China's foreign affairs ministry did not immediately respond to Reuters' requests for comment.

This move follows Washington's recent increase of duties on Chinese EVs to 100%. Brussels is expected to impose lower tariffs on imports from Chinese manufacturers such as BYD and Geely, as well as Western producers like Tesla that export cars from China to Europe.

BYD, Geely, SAIC, and Tesla did not immediately respond to Reuters' inquiries about the report.

The decision comes as European automakers face growing competition from an influx of lower-cost EVs from Chinese rivals. China has criticized the EU’s anti-subsidy investigation, urged cooperation, and lobbied individual EU countries, but has not detailed its potential response to the tariffs.

[Source: Financial Times, Reuters]

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Cyprus  |  China  |  import duty  |  Europe

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