The European Union (EU) has decided to implement tariffs on makers of battery electric vehicles (BEV) in China. The exact tariff depends on the model is on top of the existing 10% duties for exports.
The European Commission (EC) said the tariffs would be 17.4% for BYD, 20% for Geely and 38.1% for Chinese state-owned SAIC Motor. Tesla, which makes cars in China “may receive an individually calculated rate”.
The bloc will increase the tax on imports by July 4, if no resolution can be found before then.
Other companies cooperating with an ongoing EC investigation would face a tariff of 21% and non-cooperating companies of 38.1%.
The tariffs follow a similar move by the US White House last month, when the Biden administration imposed a 100% border tax on electric cars from China.
The European Commission in Brussels notified carmakers on June 12 about the tariffs. The Chinese Chamber of Commerce to the EU expressed “its shock and disappointment” with the trade measures. China exported around €10 billion ($10.8 billion) of electric cars to the EU in 2023.
Some Chinese manufacturers have for several years been ramping up production in the EU through building manufacturing plants in Eastern Europe.
China already applies 15% tariffs on European EVs and now the market is waiting to see if China increases this in a retaliatory move.
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