Europe introduces upto 48% tariffs on Chinese EV

Tesla has already applied for special considerations.

According to media reports, the European Commission has put in place a provisional import tariff of up to 48% on Chinese EVs, which will be activated only if China & EU can't come to an agreement.

The tariff rates vary between car brands, depending on the level of subsidy each of them has enjoyed from the Chinese government. The move is following the European Commission's investigation described as "unfair subsidization" by Beijing. Reports state, that from July 4, 2024, the additional import tariffs can be applied to EVs built in China if discussions with Chinese authorities don't lead to an effective solution.

As per the tariff rates, brands like SAIC which owns MG, Maxus and Inmotors, will be heavily affected with 38.1% tariffs on all its models. Other brands like Geely will incur 20% tariffs, while BYD will get an additional duty of 17.1%. All excluding the 10% standard import duty.

Tesla has already applied for special considerations. Reports state any company can challenge the ruling within 4 months of the tariff coming into force, with the evaluation process taking up to 9 months before reaching a decision.

Peter Wells, Professor of Business and Sustainability at Cardiff University, stated, "Tariffs will be passed on to consumers. They may also allow European manufacturers to charge more than they would in a more open market, [meaning] consumers on average will be paying more per car whatever the source."

Wells also mentioned, "The UK will not be forced to comply with EU tariffs, [it] may very well follow them. Actually, post-Brexit the UK is in a vulnerable position on this issue, as the EU and US are [both] imposing tariffs and other barriers to market entry by Chinese companies, in addition to vehicles produced in China by non-Chinese firms."

Source: AutoExpress