Decision made

EU fixes punitive tariffs on Chinese e-cars

Chinese car manufacturers produce very cheaply for the European market.

(Bild: BYD)

In July, the EU Commission introduced punitive tariffs against Chinese e-cars. These will now remain in place for the long term. Imported e-vehicles are to remain more expensive until 2029. This was decided by the majority of European states.

Chinese and German car manufacturers lobbied against the decision. But without success: the majority of EU member states spoke out in favor of further punitive tariffs on Friday. The necessity arises from the Chinese government's massive subsidies for e-cars. This means that they can be offered extremely cheaply in Europe, sometimes distorting competition. However, the tariffs introduced in July have already had an effect: e-cars imported from China (including those from brands such as VW or Volvo) have since become up to 40 percent more expensive.

The new tariffs are to be introduced from November. An agreement with the Chinese government could still be reached in between, but this is unlikely.

Tariffs differ depending on the manufacturer
This is what the tariffs look like: They vary depending on the manufacturer; they are added to the "normal" duty of ten percent. This depends on how strongly the Chinese state supports the respective company and where the competitive advantages are greatest.

China is sometimes ahead in e-mobility.

(Bild: stock.adobe.com)

For the SAIC brand it is a whopping 35.3 percent, for Geely (Volvo) it is 18.8 percent. For BYD cars, the premium will be 17 percent. Tesla e-cars have a lower rate of 7.8 percent, as they are not so heavily supported by the government and do not work with Chinese producers (joint venture).

VW, BMW and Mercedes are also affected by the measure as they work with Chinese partners. Around 21 percent is likely to be charged for cars imported from China.

The German car manufacturers campaigned strongly against the extension of the tariff measures in advance. BMW has already commented on the decision: This is a "fatal signal". In the end, a trade conflict could only end with losers. The fear is that the Chinese will strike back and take retaliatory measures that weaken the European economy.