EU sets out tariffs to tackle Chinese EV ‘threat’

Chinese electric cars may become pricier in the European Union (EU) after politicians called them a threat to its own industry.

It has “provisionally concluded” that Chinese electric vehicle (EV) manufacturers will face tariffs from 4 July “should discussions with Chinese authorities not lead to an effective solution”.

The EU announcement comes off the back of an ongoing investigation into what it claims is a flood of cheap, government-subsidised Chinese cars into the trade bloc.

China alleged the tariffs violate international trade rules and described the investigation as “protectionism”.

EV makers who co-operated with the investigation launched in September will face an average 21% duty, while those did not will face one of 38.1%.

Meanwhile, specific charges will apply to three companies:

• BYD: 17.4%

• Geely: 20%

• SAIC: 38.1%

The EU’s intervention comes after the US made the much bolder move of raising its tariff on Chinese electric cars from 25% to 100% last month.

The decision has drawn criticism not just from China but from politicians within the EU and several industry figures.

Germany’s transport minister Volker Wissing said it risked a “trade war” with Beijing.

“The European Commission’s punitive tariffs hit German companies and their top products,” he wrote on X, formerly known as Twitter.

Meanwhile, China’s foreign ministry spokesperson In Jian said the “anti-subsidy investigation is a typical case of protectionism”.

He added that the tariffs may also risk damaging “China-EU economic and trade co-operation and the stability of the global automobile production and supply chain”.