The European Union has decided to impose tariffs of up to 45.3% on Chinese-built electric vehicles, following the conclusion of a high-profile trade investigation, reported Reuters.
According to the European Commission, tariffs are required to counter unfair subsidies provided to Chinese manufacturers, including preferential financing and grants.
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This decision comes after launching an anti-subsidy probe just over a year ago.
The European Commission will impose additional tariffs, with rates varying from 7.8% for Tesla to 35.3% for China’s SAIC, in addition to the standard 10% car import duty in the EU.
These tariffs take effect today after their publication in the EU’s Official Journal on 29 October 2024.
The Commission noted that China’s spare production capacity of three million EVs annually is double that of the EU market. With 100% tariffs in the North America, Europe emerges as the most viable market for these vehicles.
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By GlobalDataMeanwhile, China’s Commerce Ministry said: “China does not agree with or accept the ruling.
“We also noticed that the EU side indicated it would continue to negotiate with China on price commitments”.
Beijing further added that it hoped to find a “solution acceptable to both sides as soon as possible to avoid escalating trade friction.”
The China Chamber of Commerce to the EU expressed deep disappointment over the “protectionist” and “arbitrary” measures imposed by the EU, lamenting the lack of significant progress in negotiations for alternatives to tariffs.
In an apparent retaliation, Beijing has initiated its own investigations into imports of EU brandy, dairy, and pork products this year.
Adding to the challenges faced by Chinese automakers in Europe, the European car safety agency has issued a “not recommended” rating to the driver assistance system used in BYD’s Atto 3 EV, reported Reuters.
According to the 23 October report from the European New Car Assessment Programme, the model received a score of zero for driver monitoring features and struggled to prevent undertakings at speeds exceeding 90km per hour, among other deficiencies.
