The European Commission told carmakers yesterday it would impose extra duties of up to 38.1 per cent on imported Chinese electric cars from July, in a move that China called protectionist but its car industry dismissed as one without a major impact.
Less than a month after Washington quadrupled duties for Chinese EVs to 100pc, Brussels said it would set additional tariffs of 17.4pc for BYD, 20pc for Geely and 38.1pc for SAIC, on top of the existing 10pc, over what it said were excessive subsidies.
That equates to billions of euros of extra costs for the carmakers at a time they are struggling with slowing demand and falling prices at home, according to Reuters calculations based on 2023 EU trade data.
The move comes as European carmakers are being challenged by an influx of lower-cost EVs from Chinese rivals.
Shares in some of Europe’s biggest carmakers which make a big portion of their sales in China, fell on fears of Chinese retaliation. Some like BMW will also now incur duties on their EVs made in China and sold in Europe.
“This anti-subsidy investigation is a typical case of protectionism,” said Chinese foreign ministry spokesperson Lin Jian, adding the tariffs would damage China-EU economic and trade co-operation and the stability of the global automobile production and supply chain.
Lin said China urged the EU to support free trade, adding Beijing would take all necessary measures to “firmly safeguard” its legitimate rights and interests.
The Chinese Passenger Car Association seemed less concerned.
“The EU’s provisional tariffs come basically within our expectations, averaging around 20pc, which won’t have much of an impact on the majority of Chinese firms,” CPCA Secretary General Cui Dongshu said.
“Those exporting China-made EVs that include Tesla, Geely and BYD still have huge potential for development in Europe in the future,” Cui said.
China’s commerce ministry said it would closely monitor the development and take all necessary measures to safeguard the legitimate rights of Chinese companies.
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