EU votes in favour of China-made EV tariffs, but opposition remains

  • Proposed increased tariffs from on imported China-made electric vehicles to the EU are now set to be imposed, after 10 member states backed the motion, which will see tariffs of up to 45%, depending on each manufacturer.
  • Five EU member states voted against the implementation of such tariffs, whilst another 12 abstained from the vote altogether.
  • This vote will allow the duties to remain in place for five years without further challenge, said sources close to the European Commission.

EU imposes Chinese EV tariffs, but remains divided

The vote, which originally came about after the European Union carried out an anti-subsidy investigation into imported Chinese EVs last year, means that all EVs produced in China will face heavy taxes when imported to the EU. This mirrors similar tariffs taking place in Canada and the U.S., with both countries introducing even harsher 100% tariffs against Chinese-produced EVs. Rates for this EU motion will vary from manufacturer-to-manufacturer, and will be added on to the current 10% duty. Of the big three EV manufacturers in China, SAIC will face the highest rate, at 35.3%, while BYD will see 17%, and Geely 18.8%.

The Union was rather split on the vote, with Bulgaria, Denmark, Estonia, France, Ireland, Italy, Latvia, Lithuania, The Netherlands, and Poland all voting in favour of the tariffs. Notably however, Germany, along with Hungary, Malta, Slovakia, and Slovenia, voted against the implementation of these tariffs. Another 12 EU members abstained from voting altogether.

- Advertisement -

This won’t just hit Chinese manufacturers in particular, but any car manufacturer that decides to produce EVs within China. Tesla, for instance, will now be facing an additional 7.8% tariff on any Chinese-made Teslas imported to the union. However, some China-based manufacturers have already responded to the vote, with SAIC saying that prices for its EVs sold in the EU will not increase this year. Additionally, there remains European countries outside of the EU that have so far remained open to imports of Chinese-made EVs, such as the UK and Norway. In territories such as these, and inside the EU, Chinese manufacturers will be considering local factories, to continue selling EVs across all of Europe without prohibitive tariffs.

Related Articles