- Chinese EV manufacturers will face tariffs starting on July 4 if negotiations with Chinese authorities fail.
- The tariffs are part of an ongoing investigation into cheap, government-subsidized Chinese cars entering the EU.
- Germany's Transport Minister warns of a "trade war" with Beijing.
The EU announced the tariffs as part of its ongoing investigation into an influx of cheap, government-subsidized Chinese cars into the trade bloc. China has accused the EU of violating international trade rules and described the investigation as "protectionism."
EV makers who cooperated with the investigation, launched in September, will face an average 21% duty, while those who did not cooperate will face a 38.1% duty.
Meanwhile, specific charges will apply to three companies:
BYD: 17.4%
Geely: 20%
SAIC: 38.1%
These charges will add to the current 10% tariff on all-electric cars produced in China. The EU intervened following the US's much bolder move last month, raising its tariff on Chinese electric cars from 25% to 100%.
The decision has faced criticism from China, EU politicians, and several industry figures. China's foreign ministry spokesperson, In Jian, called the "anti-subsidy investigation a typical case of protectionism."
He added that the tariffs might also risk damaging "China-EU economic and trade cooperation and the stability of the global automobile production and supply chain." The tariffs will take effect definitively in November unless a qualified majority of EU states—15 countries representing at least 65% of the bloc's population—vote against the move.
Germany's Transport Minister, Volker Wissing, warned that the decision risked sparking a "trade war" with Beijing. "The European Commission's punitive tariffs harm German companies and their top products," he wrote on X, formerly known as Twitter.
The ACEA, the European Automobile Manufacturers' Association, emphasized that "free and fair trade" is crucial for maintaining the competitiveness of the European car industry. However, they added that this is just one aspect to consider when looking to boost the adoption of electric cars.
According to the International Energy Agency’s annual Global EV Outlook, China sold over eight million electric vehicles last year, accounting for about 60% of the global total.
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