Despite German opposition, the EU’s additional tariffs on electric cars from China will finally come into effect on Thursday. The German Auto Industry Association warned that the tariffs would not only increase the risk of a mutual trade conflict but also make vehicles more expensive for consumers. The Austrian drivers’ club ÖAMTC also speaks out against additional rates.
“Ultimately, the tariffs mainly affect those people who would choose e-mobility if the vehicles were cheaper,” the head of the ÖAMTC advocacy group, Bernhard Wiesinger, said in a statement. “The current discussion is likely to further deter many potential buyers of electric cars.” At the same time, access to technology is needed to achieve climate neutrality in the transport sector, Wiesinger said.
From the perspective of the European Commission, the countervailing duties are necessary to secure the long-term future of the EU automotive industry. An investigation concluded that Chinese manufacturers benefit from unfair subsidies that give them a significant advantage in the European market. Accordingly, Chinese electric cars can typically be offered around 20 percent cheaper than models produced in the EU. The European Commission had already imposed provisional countervailing duties in July.
The maximum rate is 35.3 percent
An additional tax of 17.0 percent will now apply to electric cars from manufacturer BYD, according to the scheme. 18.8 percent is due for electric vehicles from manufacturer Geely. The maximum rate is 35.3 percent.
It is still unclear how China will react to the final imposition of the tariffs. The government in Beijing accuses the EU of protectionism and has threatened in the past to impose higher tariffs on imports of large-displacement combustion engines from the EU into the People’s Republic. German car manufacturers in particular would be affected by this.
First Chinese countermeasures
As a possible retaliatory measure, China also began considering additional taxes on pork and dairy imports. An investigation into brandy has already led to provisional measures. Negotiations on a possible amicable solution to the trade dispute remained unsuccessful until the end. One of the possible options is that e-car dealers can make price agreements and thus avoid tariffs.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
