The European Union’s decision to impose additional tariffs of up to 38.1% on electric vehicles imported from China has drawn criticism from Beijing and raised concerns about a potential trade war. The move follows an investigation into China’s state support for its EV industry, which the EU believes is causing harm to European carmakers, reports CNN.

EU vindt evenwicht tussen bescherming en groene doelen

The EU’s provisional decision to hike tariffs on Chinese EVs highlights the bloc’s increasingly protective stance on trade with China. Western officials are concerned that strategically important industries could be wiped out by cheap Chinese imports. However, the EU must also balance protecting its industry with delivering on commitments to green its economy, including a ban on the sale of new gasoline and diesel cars from 2035.

The European Commission stated, “The EU’s green transition cannot be based on unfair imports at the expense of EU industry.”

Uiteenlopende tarieven voor Chinese EV-fabrikanten

De EU heeft verschillende niveaus van nieuwe heffingen toegepast op drie grote Chinese EV-fabrikanten:

BYD: 17,1% aanvullend recht
Geely (owner of Volvo): 20% additional duty
SAIC: 38.1% aanvullend recht

Other Chinese EV makers that cooperated with the EU investigation will face a 21% additional duty, while those that did not will be subject to an extra 38.1% duty. Tesla, which manufactures many of its cars in China, could receive an individually calculated duty rate at a later stage.

China’s Response and Potential Consequences

China’s Ministry of Commerce accused the EU of “creating and escalating trade tensions” and vowed to take “all necessary measures to firmly defend the legitimate rights and interests of Chinese companies.”

De nieuwe tarieven zouden kunnen leiden tot intensieve onderhandelingen tussen Peking en Brussel om een schadelijke handelsoorlog af te wenden.

European automakers also face risks, as many manufacture cars in China and sell them in Europe, which will become more costly due to the higher tariffs. Additionally, German carmakers rely heavily on China for sales, and retaliation by Beijing could make life harder for them.

EU-lidstaten verdeeld over tarieven

EU member states are divided on the tariffs, with France and Spain in favor, while Germany is firmly opposed.

De Duitse bondskanselier Olaf Scholz waarschuwde tegen protectionisme en isolatie door te stellen dat het "uiteindelijk alles alleen maar duurder maakt en iedereen armer".

EVXL’s Take

The EU’s decision to hike tariffs on Chinese EVs is a significant development in the global EV market. While the move aims to protect European automakers, it also risks escalating trade tensions with China, a crucial market for many European companies. As the world transitions towards a greener future, it is essential for nations to find a balance between supporting their domestic industries and fostering international cooperation to achieve shared climate goals.

De verschillende tarieven die worden opgelegd aan Chinese EV-fabrikanten kunnen leiden tot verschuivingen in de marktdynamiek, waarbij sommige bedrijven beter gepositioneerd zijn om de extra kosten te absorberen dan andere. De mogelijkheid voor Chinese fabrikanten van elektrische voertuigen om productiefaciliteiten op te zetten in de EU, zoals BYD heeft toegezegd te zullen doen in Hongarije, kan hen ook helpen om de tarieven te omzeilen en een concurrentievoordeel te behouden.

As the situation unfolds, it will be crucial to monitor the negotiations between the EU and China and the potential consequences for the global EV industry. The outcome of this trade dispute could have far-reaching implications for the adoption of electric vehicles and the pace of the world’s transition to a more sustainable future.