Employees on a SAIC car factory assembly line in Nanjing, Jiangsu Province. The additional tariffs in Europe will hit Chinese electric-vehicle makers including BYD and SAIC. Photograph: Alex Plaveski/EPABrussels is pushing ahead with Chinese electric vehicle tariffs that are set to bring in more than €2 billion a year, brushing aside German government warnings that the move risks starting a costly trade war with Beijing.
Beijing has warned it would retaliate as it seeks to persuade a majority of EU capitals to oppose the new tariffs, which would be on top of the bloc’s existing 10 per cent duties. Beijing is already applying a 15 per cent tariff on European EVs.‘People are not reading your stuff’ is the worst thing you can say to journalistsGermany, Sweden and Hungary have said they do not approve of the move, fearing Chinese retaliation.
The additional tariffs in Europe will hit Chinese producers including BYD and SAIC, as well as companies such as Tesla which have factories in China. The duties may vary according to producer, depending on the level of subsidy the EU claims it has identified. The commission expects Chinese EVs to hold a 15 per cent market share in the EU next year. It says prices are typically 20 per cent lower than those of EU-made models.
Many EU carmakers have condemned the plan, fearing China might respond in kind or even block them from its market. European brands accounted for about 6 per cent of EV sales in the country in 2022. The three leaders would need to secure at least 11 other governments to overturn the commission’s decision on tariffs. Other central European countries such as the Czech Republic and Slovakia are expected to join the opposition.