EU Imposes Extra Taxes on Chinese Electric Cars to Protect Local Market
The European Commission (EC) has announced new tariffs on China-made Battery Electric Vehicles (BEVs) starting July 5. This move aims to counter China’s attempts to dominate the European electric vehicle market.
Investigation Findings
After a nine-month investigation, the EC concluded that Chinese BEV manufacturers benefit from unfair subsidies. These subsidies allow them to sell their vehicles at significantly lower prices compared to European-made BEVs, posing a threat to the EU economy and affecting around 12 million jobs.
Details of the Tariffs
The new tariffs will be added to the existing 10% tax rates for EVs in the EU. The specific tariffs are:
| Company | Tariff |
|---|---|
| BYD | 17.4% |
| Geely | 19.9% |
| SAIC | 37.6% |
| Other cooperating Chinese BEV producers | 21% |
| Non-cooperating Chinese BEV producers | 38.1% |
The EC’s decision aims to ensure fair competition and protect the EU’s electric vehicle market from economic injury.
