Very high taxes

After the European Commission concluded that electric cars imported from China unfairly benefit from state subsidies. Additional tariffs up to 38.1%. However, different amounts of taxes were prepared for each Chinese brand.

• It is stated that BYD automobile tariff will be 17.4%.
• Geely-20%.
• SAIC will face an additional tax of 38.1%.
• Other automakers’ share varies depending on whether they cooperate with an EU investigation into the Chinese government’s subsidies to electric car makers. Thanks to these supports Electric cars produced in China can be sold at much lower prices than their European rivals.
• Chinese automakers that cooperate with the investigation will face an additional tax of 21 percent, while those who do not cooperate will face an additional tax of 38 percent.

Representatives of the European Commission contacted Chinese officials to “examine possible solutions” to this problem. Meanwhile, it is planned to New tariffs will be implemented on July 4if they cannot reach an agreement.

Why is the EU imposing new tariffs on electric car imports from China?

In October, the EU launched an investigation into China’s subsidies for electric cars due to rising imports.

Global markets are currently flooded with cheaper electric cars. Its prices are kept at an artificially low level thanks to large government subsidies,
– European Commission President Ursula von der Leyen said in her annual speech to the European Parliament.

The comments come as Chinese electric car makers such as BYD are launching new models targeting the region. BYD is already one of the leading electric car brands in Thailand, Brazil, Israel and other countries; Brands such as Geely, SAIC and NIO are looking for ways to expand into larger global markets to leave their Western competitors behind.

According to a study by Dataforce, Chinese brands like BYD accounted for 9% of electric cars sold in Europe last year. This number is expected to rise rapidly over the next few years as new low-cost electric vehicles enter the market.

As part of the investigation, the Commission concluded that electric vehicles produced in China benefit from unfair subsidies. In a press release published on Wednesday, the Commission said this unfair practice “threatens economic harm to EU producers and countries with economies in transition.”

Not everyone supported such a move

Some authorities and European car manufacturers They oppose the move out of fear it could lead to retaliation from China. In particular, they worry that China’s response could make electric cars more expensive overall, which could turn off customers, especially those who are still not fully convinced they should switch to electric cars.

Let us remind you that the USA previously quadrupled import duties on electric cars from China. This, along with additional taxes on Chinese-made semiconductors, solar cells, batteries and medical drugs, was part of a larger move by the US government to reduce China’s influence on its economy.