The European Union has ramped up tariffs on Chinese-built electric vehicles (EVs), setting rates as high as 45.3% following its most prominent trade investigation to date. This move marks the culmination of a year-long anti-subsidy probe, resulting in additional tariffs ranging from 7.8% for Tesla to 35.3% for China's SAIC, on top of the EU's standard 10% car import duty.
The European Commission justified the tariffs by citing unfair subsidies, including preferential financing and grants, as well as the provision of land, batteries, and raw materials at below-market prices. The new tariffs were officially published in the EU's Official Journal on Tuesday and are set to take effect immediately.
China's Reaction
China has strongly rejected the EU's decision. A spokesperson from the Ministry of Commerce stated that the EU's anti-subsidy measures are irrational and protectionist, cloaked under the guise of \"fair competition.\" China has already appealed to the World Trade Organization's dispute settlement mechanism and vows to protect the interests of its enterprises.
Opposition from the UK and Germany
The EU's decision has not been without criticism from its own members. The United Kingdom's Secretary of State for Business and Trade, Jonathan Reynolds, expressed openness to reviving key trade dialogues with China, emphasizing that cooperation is possible in the trade sector.
Germany's main auto industry group echoed these sentiments, warning that the new tariffs could ignite a far-reaching trade conflict. Hildegard Mueller, president of the German Association of the Automotive Industry, called the tariffs a setback for global free trade and urged for continued negotiations.
BMW's head, Oliver Zipse, added that the EU's move could harm globally active companies and slow down the decarbonization efforts in the transport sector by limiting the supply of electric cars to European customers.
Ongoing Negotiations
Despite the tensions, China's Ministry of Commerce highlighted the EU's willingness to continue discussions on price commitments for Chinese-made EVs. Technical teams from both sides are currently engaged in a new phase of consultations, aiming to reach a mutually acceptable solution and prevent an escalation of trade frictions.
Reference(s):
China, UK, Germany express disapproval over EU tariffs on Chinese EVs
cgtn.com
