Major new EU tariffs on Chinese electric cars take effect

by dpa | 30.Oct 2024 | Europe in brief

More EU news is available on the wire services of the respective news agency.

Germany opposed new EU tariffs on Chinese electric vehicles, which entered into force on Wednesday (30 October). The country has a major car industry and several large German brands have invested in the Chinese market and rely on sales in China.

A car charges at a charging station in Lower Saxony's largest charging park for electric cars in Norddeich. EU tariffs of up to 35.3% on battery-powered electric vehicles from China will definitively enter into force on 31 October, according to a European Commission document posted online.
Der er allerede ti procent told på kinesisk producerede elbiler, der importeres til EU. Nu øges toldsatserne. Photo: Lars Penning/dpa
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Brussels (dpa) – European Union tariffs of up to 35.3 percent on battery-powered electric vehicles (EV) from China entered into force on Wednesday, after being published in the EU Official Journal, a register of EU laws, late on Tuesday.

The tariffs are set to be in force for five years in addition to the EU’s standard 10 percent import levy on cars. Chinese companies affected include BYD with tariffs of 17 percent, Geely at 18.8 percent and SAIC at 35.3 percent according to the European Commission.

The measures came into force a day earlier than expected as the last official step in the process – the regulation’s publication in the EU Official Journal – was initially seen as happening on Wednesday, but occurred on Tuesday evening instead.

Tensions over Chinese exports have been rising in recent months, with the United States and the EU accusing Beijing of supporting sectors like green technologies with massive state subsidies. Manufacturers in China that cooperated with the EU probe were subjected to a 20.8 percent tariff. Non-cooperative electric car producers were hit with 35.3 percent.

The Commission announced the extra tariffs in July after an investigation accused Beijing of subsidising their domestic electric car manufacturers and thus distorting the market in the EU.

The punitive trade measures come despite strong opposition from Germany, amid concerns over retaliatory actions which could hurt the country’s major car industry. German carmakers, which include brands like Volkswagen, BMW and Mercedes, generally opposed the tariffs as they have invested in the Chinese market and have relied heavily on sales there.

Brussels and Beijing have so far been unable to find a solution to the issue of Chinese subsidies for electric vehicles and tariffs at the negotiating table despite long-running talks. The Commission has repeatedly stressed that a negotiation outcome must eliminate the influence of harmful subsidies. China has said it wants to find a negotiated solution. (30 October)

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