The European Commission is introducing temporary punitive tariffs on electric cars produced in China and imported into Europe. The Brussels authorities justify this move by paying unfair subsidies to car manufacturers and thus distorting competition.
EU member states must now decide within four months whether to introduce the punitive tariffs permanently. They would then be valid for 5 years.
Trade dispute with China
The punitive tariffs vary between 17.4 and 37.6 percent depending on the manufacturer and are in addition to the existing import duties of ten percent for electric cars. Since the punitive tariffs are only temporary, customs authorities must demand them in the form of a security from 5 July. Depending on how the EU states decide in the autumn, this will be withheld or released again. It is also possible that the European Commission and China will resolve the trade dispute through negotiations by then.
The penalty rates depend on the amount of the subsidies
The preliminary punitive tariffs were calculated based on the size of subsidies for different carmakers: an import tariff of 17.4 percent will apply to BYD, 19.9 percent will be imposed on Geely (Volvo cars; note), and 37.6 percent on Volkswagen’s Chinese state-owned company SAIC.
Other carmakers that cooperated with the EU investigation would face a weighted average tariff of 20.8 percent. A tariff of 37.6 percent will be imposed on electric cars from manufacturers that did not cooperate.
Source: Krone
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