24/7 Space News
CAR TECH
EU slaps Chinese electric cars with tariffs of up to 38%
EU slaps Chinese electric cars with tariffs of up to 38%
By Raziye Akkoc
Brussels, Belgium (AFP) July 4, 2024

The European Union on Thursday slapped extra provisional duties of up to 38 percent on Chinese electric car imports because of Beijing's "unfair" support, a move that risks escalating tensions with Beijing.

A European Commission probe launched last year concluded that state subsidies for Chinese EV manufacturers were unfairly undercutting European rivals -- which Brussels wants to shield as they make the transition from thermal to electric power.

The Chinese Chamber of Commerce to the EU slammed the tariffs, coming on top of current import duties of 10 percent, as "politically-motivated" and "protectionist", while voicing hope the dispute could yet be resolved through dialogue.

Europeans are split on the move, with Germany and its homegrown auto champions, who do significant trade with China, fearing it will do more harm than good if it leads to a clampdown on EU exports as Beijing has already threatened.

German auto giant Volkswagen slammed the move as "detrimental" while the head of BMW said the tariff battle "leads to a dead end".

France and Italy have pushed for tariffs on Chinese EVs -- whose EU market share has skyrocketed -- but Sweden like Germany has expressed reservations, while Hungary is outright opposed.

The provisional tariffs kick in from Friday, with definitive duties to take effect in November for a five-year period, pending a vote by the EU's 27 states.

"Our investigation... concluded that the battery electric vehicles produced in China benefit from unfair subsidisation, which is causing a threat of economic injury to the EU's own electric car makers," the EU's trade chief Valdis Dombrovskis said.

In response, the commission imposed provisional duties on major Chinese manufacturers including 17.4 percent for market major BYD, 19.9 percent for Geely and 37.6 percent for SAIC.

Other producers in China that cooperated with Brussels will face a tariff of 20.8 percent, while those that did not would be subject to the maximum 37.6 percent duty.

US tech billionaire Elon Musk's Tesla -- which manufactures in China -- is the only electric automaker to have asked Brussels for its own duty rate, to be calculated based on evidence it has submitted.

The Tesla Model 3 would be affected as well as the electric Mini, the Volvo EX40 and all other non-Chinese branded cars made in China.

A Tesla spokesperson suggested the Model 3's prices would increase "in the short term".

- 'Intensive' talks with China -

The move comes despite the opening of talks between Chinese and EU trade officials, and trade chief Dombrovskis said Brussels will continue "to engage intensively with China on a mutually acceptable solution".

China's electric car maker Nio said it still hoped for a resolution with the EU, while fellow EV maker XPeng said it would "find ways to minimise the impact on consumers" without changing its international strategy.

EU officials have indicated that, should a negotiated solution emerge, they may not ultimately need to levy the tariffs.

But Dombrovskis cautioned that "any negotiated outcome to our investigation must clearly and fully address EU concerns and be in respect of WTO rules."

Cui Dongshu, secretary-general of the China Passenger Car Association, told AFP the move "would obviously have a negative impact on the development of China's EV industry, especially its development in the EU in the short term."

Beijing has already signalled its readiness to retaliate by launching an anti-dumping probe last month into pork imports, and Chinese media suggest further probes could be in the works.

Chinese officials have also railed against EU investigations targeting state subsidies in the green tech sector, including wind turbines.

- Expected cut to imports -

The United States has already hiked customs duties on Chinese electric cars to 100 percent, while Canada is considering similar action.

But Brussels faces a delicate balancing act as it seeks to defend Europe's auto industry -- the jewel in its industrial crown -- while both avoiding a damaging showdown with China and meeting its targets for slashing carbon emissions.

The EU aims for Europeans to switch massively to electric vehicles as it plans to outlaw the sale of new fossil fuel-powered cars from 2035.

Chinese-made EVs' market share in the EU climbed from around three percent to more than 20 percent in the past three years, according to the European Automobile Manufacturers' Association.

Chinese brands account for around eight percent of that share, it said.

Germany's Kiel Institute for the World Economy, alongside Austrian institutes, predicted the provisional higher taxes would reduce vehicle imports from China by 42 percent.

Electric car prices could rise by an average of 0.3 to 0.9 percent in the EU, they added.

German auto manufacturers fear any retaliation could hurt their activities in China.

Duties were "generally not suitable for strengthening the competitiveness of the European automotive industry in the long term -- we reject them", Volkswagen said.

burs-raz/ec/rl

Volkswagen

BYD COMPANY

Geely

Tesla

Related Links
Car Technology at SpaceMart.com

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
CAR TECH
China's EV makers Nio, XPeng commit to EU market despite tariffs
Beijing (AFP) July 4, 2024
China's electric car makers Nio and XPeng told AFP on Thursday they had no plans to quit the European market after the EU imposed tariffs on Chinese-made EVs. The European Union slapped extra provisional duties of up to 38 percent on the EV imports because of "unfair" state subsidies, despite Beijing's warnings the move would unleash a trade war. XPeng, a Chinese EV firm known for its designer models, said it would remain in the European market despite the tariffs. "As a company with a globa ... read more

CAR TECH
Space Renaissance International Achieves Observer Status At U.N. COPUOS

NASA Seeks Feedback on Requirements for New Commercial Space Stations

HERA crew complete 45-day simulated journey to Mars

NASA Explores the Potential of Fungi to Grow Space Habitats

CAR TECH
SpaceX completes Starlink launch, brings Direct to Cell satellite total to 103

Firefly Aerospace Successfully Launches Eight CubeSat Satellites

Starliner undergoing thruster testing before indefinite return flight

Space Pioneer Issues Apology After Engine Test Explosion

CAR TECH
Volunteer Crew to Exit NASA's Simulated Mars Habitat After 378 Days

This desert moss has the potential to grow on Mars

Crew inside NASA's Mars habitat simulator to exit after more than a year

NASA Parachute Sensor Testing Could Make EPIC Mars Landings

CAR TECH
Chinese Scientists Develop Novel Rosa Roxburghii Varieties via Space Breeding

Shenzhou 18 Crew to Conduct Second Extravehicular Activities

Hainan Launch Center Completes Construction for First Mission

Ten make the cut for China's fourth batch of astronauts

CAR TECH
NASA Shares Use Requirements With Commercial Destination Partners

Dhruva Space partners with Kinis to provide space-based IoT connectivity in India

Indonesia aims to build cutting-edge spaceport but faces obstacles

Leaf Space enables Sateliot to scale without significant capex in the ground segment

CAR TECH
Quadrupolar Nuclei Measured Using Zero-Field NMR for the First Time

Researchers Uncover New Insights into High-Temperature Superconductivity in Copper Oxides

Serbia top court opens way for disputed lithium mining project

Amazon to build 'top secret' cloud for Australia's spies

CAR TECH
MIT engineers find a way to protect microbes from extreme conditions

Scientists reveal the density differences of sub-Neptunes due to resonance

Organic material from Mars reveals the likely origin of life's building blocks

Geoscientists dig into why we may be alone in the Milky Way

CAR TECH
NASA's Juno Observes Lava Lakes on Jupiter's Moon Io

Understanding Cyclones on Jupiter Through Oceanography

Unusual Ion May Influence Uranus and Neptune's Magnetic Fields

NASA's Europa Clipper Arrives in Florida for Launch Preparation

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.