The EU additional tariffs on electric cars imported from China have been in force since midnight. The regulation adopted by the European Commission was published in the Official Journal of the EU on Tuesday evening and came into force the following day. The additional taxes should apply for five years. There is strong criticism of the new regulations from Germany.
Before the EU Commission’s decision, a sufficiently large majority of EU states voted in favor of the punitive tariffs at the beginning of the month. Germany voted against the measure, fearing a major new trade conflict and possible retaliation against German manufacturers.
From the European Commission’s perspective, the countervailing duties are necessary to secure the long-term future of the auto industry in the EU. An investigation concluded that Chinese manufacturers benefit from unfair subsidies that give them a significant advantage in the European market.
Accordingly, Chinese electric cars can usually be offered around 20 percent cheaper than models manufactured in the EU. The EU Commission therefore introduced provisional countervailing duties in July.
Tariffs vary
An additional tax of 17.0 percent will now apply to electric cars from the manufacturer BYD, as the regulation shows. For electric vehicles from the manufacturer Geely, 18.8 percent is due. The maximum rate is 35.3 percent. The tariffs are in addition to an existing tariff rate of ten percent.
Negotiations about a possible amicable solution to the trade dispute remained unsuccessful until the end. One option seen is that e-car dealers can enter into price commitments and thus avoid tariffs. At a technical level, the negotiations continued even after the decision in favor of the compensatory charges, the Commission said.
