The European Union will place an additional tariff on vehicles imported from China starting next month, the commission announced on Wednesday. The extra tariffs go as high as 38 percent, adding to the existing 10 percent duty the EU imposes on foreign vehicles. The move comes after a monthslong investigation concluded that Chinese EV makers benefit from unfair state-backed subsidization, allowing them to sell their vehicles for cheaper than rivals.
The European Commission says it’s imposing the new tariffs to “remove the substantial unfair competitive advantage” of Chinese EVs and to ensure they “compete on a level playing field.” The tariffs vary by company, with BYD facing a 17.4 percent duty, Geely at 20 percent, and SAIC at 38.1 percent. China’s Ministry of Commerce isn’t happy with the changes.
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