EU against China

Additional tariffs on e-cars finally come into force

A showroom of the Chinese car manufacturer BYD in Beijing

(Bild: APA/AFP/WANG Zhao)

Despite German opposition, the EU's additional tariffs on e-cars from China will finally come into force on Wednesday. The German Association of the Automotive Industry warned that the tariffs would not only further increase the risk of a mutual trade conflict, but would also make vehicles more expensive for consumers. The Austrian motorists' club ÖAMTC is also against extra tariffs.

"Ultimately, the tariffs will primarily affect those people who would opt for e-mobility if the vehicles were cheaper," said Bernhard Wiesinger, head of the ÖAMTC interest group, in a statement. "The current discussion is probably putting off many potential buyers of e-cars even more." At the same time, a technology-open approach is needed to achieve climate neutrality in transportation, Wiesinger added. 

Chinese e-cars prepared for transportation

(Bild: APA/AFP/STR)

The European Commission believes that the countervailing duties are necessary to secure the long-term future of the automotive industry in the EU. In an investigation, it came to the conclusion that Chinese manufacturers benefit from unfair subsidies that give them a considerable advantage on the European market. According to the study, Chinese electric cars can normally be offered around 20 percent cheaper than models manufactured in the EU. The EU Commission therefore introduced provisional countervailing duties back in July.

A showroom of the Chinese car manufacturer BYD in Beijing

(Bild: APA/AFP/WANG Zhao)

Maximum rate is 35.3 percent
An extra duty of 17.0 percent will now apply to electric cars from the manufacturer BYD, according to the regulation. Electric vehicles produced by Geely will have to pay 18.8 percent. The maximum rate is 35.3 percent. 

It is still unclear how China will react to the final import duties. The government in Beijing accuses the EU of protectionism and has threatened in the past to impose higher tariffs on the import of large-displacement combustion engines from the EU to the People's Republic. This would affect German car manufacturers in particular.

First Chinese countermeasures
As possible retaliatory measures, China has also begun to examine additional levies on the import of pork and dairy products. An investigation into spirits has already led to provisional measures. Negotiations on a possible amicable solution to the trade dispute remained unsuccessful until recently. One option seen is for e-car dealers to enter into price commitments and thus avert the tariffs.