{"id":15269,"date":"2024-07-04T16:41:44","date_gmt":"2024-07-04T16:41:44","guid":{"rendered":"http:\/\/TheNextWeb=1408198"},"modified":"2024-07-04T16:41:44","modified_gmt":"2024-07-04T16:41:44","slug":"why-the-eu-is-imposing-maximum-tariffs-of-36-7-on-chinese-evs","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=15269","title":{"rendered":"Why the EU is imposing maximum tariffs of 36.7% on Chinese EVs"},"content":{"rendered":"\n
<\/div>\n

The EU today confirmed<\/a> huge new tariffs for EVs imported from China.<\/span><\/p>\n

From Friday, provisional charges of between 17.4% and 37.6% will apply to the vehicles.<\/p>\n

The lowest level will apply to BYD, an automaker based in Shenzhen. Geely, which owns Volvo, Polestar, and Lotus, faces duties of 19.9%. SAIC, a Chinese state-owned carmaker, will receive the maximum 37.6%.<\/p>\n

Other companies will be subject to new tariffs of 20.8%, the weighted average.<\/span><\/p>\n

These fees will come on top of a 10% duty that was already in place. As a result, prices of EVs<\/a> in Europe could increase. Beijing may also impose retaliatory measures.<\/p>\n

Nonetheless, the EU argues that the intervention is essential.<\/p>\n

Why is the EU imposing the new tariffs?<\/h2>\n

The tariffs are an attempt to protect the EU auto industry. Beijing has been accused of creating unfair competition through \u201cillegal subsidisation\u201d<\/span> of Chinese EV makers.<\/p>\n

Last October, the EU opened<\/a> an investigation into<\/span> the matter.<\/p>\n

\u201cThe electric vehicle sector holds huge potential for Europe\u2019s future competitiveness and green industrial leadership,\u201d Ursula von der Leyen, the European Commission president, said at the probe\u2019s launch.<\/p>\n

\u201cEU car manufacturers and related sectors are already investing and innovating to fully develop this potential. Wherever we find evidence that their efforts are being impeded by market distortions and unfair competition, we will act decisively.\u201d<\/p>\n

The EU has now concluded that the subsidies are indeed unfair. With access to this state supports, Chinese EV makers stand accused of artificially lowering prices.<\/p>\n

According to Brussels, this threatens \u201ceconomic injury\u201d to the bloc\u2019s carmakers. But not everyone in the EU supports the new tariffs.<\/p>\n

Reactions in the EU<\/h2>\n

Government officials and carmakers have raised several objections to the tariffs.<\/p>\n

Sweden\u2019s prime minister fears the duties will escalate \u201ca wider trade war.\u201d Germany\u2019s chancellor warned the measures will also harm EU companies that import EVs from China.<\/span><\/p>\n

Hungary, which has forged a strong trade partnership with Beijing, has provided sterner rebukes. \u201cWe disagree with the brutal European punishment of Chinese electric car manufacturers with punitive tariffs,\u201d the country\u2019s economic ministry said last month<\/a>. \u201cProtectionism is not the solution.\u201d<\/span><\/p>\n

German car giant Volkswagen has also slammed the charges. \u201cThe negative effects of this decision outweigh any benefits for the European and especially the German automotive industry,\u201d a company spokesperson said in a statement.<\/p>\n

Industry analysts have also questioned the EU\u2019s plans. James Edmondson, an EV expert at market intelligence firm IDTechEx, fears that the plan will backfire.<\/span><\/p>\n

\u201cThe long term impact of restricting trade with China more generally could be detrimental to EU manufacturers and adoption of EVs especially when the EU is still so reliant on China for components like EV batteries,\u201d he told TNW<\/a> last month.<\/span><\/p>\n

Inevitably, the EU has downplayed these concerns. The bloc\u2019s trade chief, Valdis Dombrovskis, said discussions with Beijing could still create a mutually beneficial resolution.<\/p>\n

\n

\u201cOur aim is to\u2026 ensure fair competition and level playing field,\u201d Dombrovskis told Bloomberg News<\/a> today. \u201cTherefore, once again, we do not see any basis for retaliation.\u201dThose talks with China are ongoing and indeed should a mutually beneficial solution emerge, we can also find ways not to apply at the end of the day the tariffs.\u201d<\/p>\n<\/div>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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