EU to slap tariffs on Chinese EVs

The European Union has announced it will impose extra duties of up to 38.1% on imported Chinese electric vehicles (EVs) from July.

The tariffs come on top of an existing 10 per cent levy on cars imported into the EU and risk triggering a trade war with China, which says it will take measures to safeguard its interests.

EU officials have made the move following an investigation into state subsidies for Chinese battery electric vehicles (BEVs).

“The provisional findings of the EU anti-subsidy investigation indicate that the entire BEV value chain benefits heavily from unfair subsidies in China, and that the influx of subsidised Chinese imports at artificially low prices therefore presents a threat of clearly foreseeable and imminent injury to EU industry,” the EU says.

Brussels adds the extra tariffs on EV manufacturers in China will range from 17.4 per cent for BYD to 38.1 per cent for SAIC, reports Reuters.

The move also comes just weeks after the US revealed plans to increase duties for Chinese EVs to 100 per cent.

China’s government warns news of the latest tariffs will damage China-EU economic co-operation and the stability of global vehicle production and supply chains.

However, the Chinese Passenger Car Association appears less concerned and says the provisional tariffs are within its expectations, averaging around 20 per cent.

It notes Chinese EV makers and suppliers are also investing in European production, which would avoid duties.