EU slaps tariffs of as much as 38% on Chinese electrical automobiles – DW – 07/04/2024 | EUROtoday

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The European Commission on Wednesday introduced it might impose new tariffs of as much as 37.6% on Chinese electrical automobiles beginning on Friday.

The Commission mentioned the brand new duties are to counteract what it known as “unfair” subsidies Chinese electrical vehiclemakers obtain from the Chinese authorities. The subsidies, in line with the EU, create a “threat of economic harm” to European automotive producers.

As of Friday, the brand new provisional tariffs can be added to the present 10% import duties. A ultimate determination on the tariffs is about for November as Brussels and Beijing intention to resolve the battle by means of negotiations.

What did the EU say?

“There is no basis for China to retaliate after the EU said it will impose tariffs of up to 37.6% on imports of electric vehicles made in China,” EU commerce chief Valdis Dombrovskis mentioned on Thursday in an interview with press company Bloomberg.

European Commission President Ursula von der Leyen mentioned the Commission’s new provisional duties of 17.4% to 37.6% intention to cease a threatened flood of low-cost, state-subsidized electrical automobiles.

The European Commission final month initially introduced provisional tariffs which are nearly equivalent to these being utilized from Friday.

Commission authorities, nonetheless, made slight changes after firms identified minor errors within the preliminary calculations.

Over the subsequent 4 months, the tariffs can be provisional whereas either side proceed intensive negotiations, the European Commission mentioned.

The EU’s anti-subsidy investigation will proceed for almost 4 extra months. By then, the Commission may recommend “definite duties” for 5 years, which EU members will vote on.

China Yantai | Cars in the port for export
Chinese manufactured electrical automobiles ready to be loaded on the cargo ship for export Image: AFP

How did China reply?

Beijing mentioned it plans to take “all necessary measures” to safeguard China’s pursuits. Chinese officers have thought of imposing new tariffs on merchandise like cognac and pork imported into China in retaliation.

“So far both sides have held several rounds of technical talks over tariffs on the issue,” the Chinese Commerce Ministry mentioned on Thursday.

“There is still a four-month window before arbitration, and we hope that the European and Chinese sides will move in the same direction, show sincerity, and push forward with the consultation process as soon as possible,” mentioned He Yadong, a ministry spokesperson.

Why are German drivers hesitant to purchase electrical automobiles?

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Tesla and BMW face decrease tariffs

Not all Chinese EV producers had been alarmed by the brand new EU duties.

“The tariffs will have only a modest impact on the majority of Chinese firms,” the Chinese Passenger Car Association mentioned.

Companies that cooperated with the EU’s anti-subsidy investigation, together with Western firms like Tesla and BMW, will face a 20.8% tariff on automobiles made in China. Companies that didn’t cooperate will face a 37.6% tariff.

The Commission estimates that Chinese manufacturers have elevated their share of the EU market to eight% from lower than 1% in 2019 and will attain 15% by 2025. It additionally factors out that Chinese EVs are typically priced 20% decrease than EU-made automobiles.

European policymakers intention to stop a repeat of the photo voltaic panel disaster from a decade in the past, when restricted EU motion on Chinese imports led to the collapse of many European producers.

The United States plans to impose a 100% tariff on Chinese EV imports beginning in August.

sp/sms (AFP, DPA, Reuters)

https://www.dw.com/en/eu-slaps-tariffs-of-up-to-38-on-chinese-electric-vehicles/a-69557494?maca=en-rss-en-bus-2091-rdf