-
The EU has imposed tariffs of up to 38.1% on Chinese electric vehicles.
-
Joe Biden also launched a crackdown on Chinese electric cars last month, imposing a 100% tax.
-
Trade barriers stem from fears that a wave of cheap Chinese brands could take over Western markets.
The EU is taking tough action against Chinese EV companies.
The bloc will impose tariffs as high as 38.1% on electric vehicles imported from China to Europe from next month, the European Commission said on Wednesday.
Tesla rival BYD faces a tariff of 17.4%, Geely 20% and SAIC Motor 38.1%. The EU previously had a 10% duty on imported electric vehicles.
The European Commission launched an investigation into Chinese electric vehicles last October, investigating whether state subsidies in China kept the price of their electric vehicles artificially low.
The conclusion comes after Joe Biden announced a sweeping set of tariffs on $18 billion of Chinese goods in May, including a 100% tax on Chinese vehicles.
Electric cars from Chinese brands are virtually non-existent in the US, thanks to existing trade barriers.
But in Europe they have made steady progress, with Tesla rival BYD building a factory in Hungary and startups Nio and Xpeng releasing models in several European countries.
Chinese brands have risen from less than 1% of the European EV market in 2019 to 8% in 2023, according to the European Commission, and are expected to reach 15% by 2025.
Despite the crackdown, Philip Nothard, director of insight and strategy at automotive services company Cox Automotive, told Business Insider that the measures will not be enough to keep Chinese EV companies in Europe at bay.
“Even with tariffs, it won’t slow growth,” Nothard said.
“If you look at companies like BYD, they have a very efficient production chain. That makes them extremely agile when it comes to changing products for different markets,” he added, suggesting that Chinese companies could adjust their growth plans to keep prices low. even with new rates.
The trade barriers will also raise fears that China will retaliate with its own tariffs.
Chinese officials have hinted that the Asian superpower could impose taxes as high as 25% on imported cars in response to European and US tariffs.
Read the original article on Business Insider
