The EU has "greenlit" additional tariffs on electric vehicles imported from China — these tariffs take effect today and will remain in place for the next five years.
Previous negotiations between China and Brussels were unsuccessful; however, discussions will continue in the future to try to reach a pricing agreement.
The tariff rates will vary by brand: the highest rate reaches 35.7% for those who did not cooperate in the investigation, while manufacturers who collaborated with the EU will receive a rate of 20.7% or less (for those, like Tesla, that submitted a "justified request for individual examination").
- Tesla: 7.8%
- BYD: 17%
- Geely: 18.8%
- SAIC: 35.3%
The EU believes that these additional tariffs (a previous duty of 10% was in effect) are necessary to counterbalance the effects of Chinese subsidies: Beijing generously funds its domestic electric vehicle sector, allowing local manufacturers to sell cars at lower prices than their European competitors. As a result of these actions, sales of Chinese electric vehicles in Europe have surged: their market share increased from 1.9% in 2020 to 14.1% in the second quarter of 2024.
The European Commission notes that China's production capacity, reaching 3 million electric vehicles per year, is double the size of the EU market. Therefore, considering the 100% tariffs imposed on electric vehicles from China in the US and Canada, Europe is the most obvious sales market for them.
Source: European Commission, Euro News, Forbes
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