ASIATODAY.ID, JAKARTA – The European Union (EU ) is pushing ahead with protectionist measures targeting Chinese battery electric vehicles (BEVs) despite warnings from Western car-makers.
The European Commissions announced slightly-adjusted tariff rates on electric cars originating from the People’s Republic of China (PRC).
The duties are up to on percentage point lower than the provisional tariffs slapped on the Chinese producers in July.
BYD will have to pay a 17 percent import duty on its cars while Geely faces a 19.3 percent charge and SAIC, owner of the formerly-British MG sports marque, will have 36.3 percent added to the cost of its popular EVs.
Other firms that cooperate with the EU’s trade probe will be charged a 21.3 percent tariff, while those who do not will be penalised at the same 36.3 percent rate as SAIC.
Tesla, the US carmaker with a “gigafactory” Shanghai, was hit with an individual nine percent tariff. Last year, Tesla’s Shanghai plant delivered 947,000 vehicles, a 30 percent increase from 2022.
According to Bloomberg, the announced duties would be imposed on top of the 10 percent tariffs that exporters from China already are subject to.
The European commission said the measure is in retaliation for Chinese government subsidies to its auto industry industry, claiming that Beijing grants fewer subsidies to foreign-owned companies like Tesla.
Interested parties have until August 30 to request hearings with the Commission on the matter. If EU member states vote for the restrictions, the EC will publish a final decision on the tariffs no later than October 30. After that the extendable duties will be in place for five years.
China has repeatedly warned the EU that the EV tariffs ruling “lacks a factual and legal basis, seriously violates World Trade Organization (WTO) rules and undermines global cooperation on climate change,” according to news agency Xinhua.
On August 9, Beijing filed an appeal with the WTO concerning the imposition of provisional additional tariffs on China-produced EVs. China also vowed to retaliate with tit-for-tat duties on a wide range of European products, including pork, spirits and cars with large engines meaning nothing short of a trade war between the EU and the PRC.
Several EU member states, including Germany and Hungary, have also voiced their opposition to the EC protectionist measures.
But it would require a “qualified majority” of at least 15 countries representing 65 percent of the EU population to block the measure during the final vote.
Western carmakers also opposed the measure. BMW chief Oliver Zipse warned last month that the additional tariffs do not strengthen the competitiveness of European manufacturers, but “harms the business model of globally active companies” and “limits the supply of electric cars to European customers” undermining the very idea of de-carbonization the EU promotes. (Sputnik)
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