BRUSSELS: The European Union threatened on Wednesday to hit Chinese electric car imports with additional tariffs of up to 38 per cent from next month following an anti-subsidy probe, a move that risks triggering a trade war.
The European Commission has proposed a provisional hike of tariffs on Chinese manufacturers - 17.4 per cent for market major BYD, 20 per cent for Geely and 38.1 per cent for SAIC.Electric car producers in China that cooperated with the EU will face a tariff of 21 per cent, while those that did not cooperate would be subject to a 38.1 per cent duty.To halt the extra tariffs being levied, Beijing and Brussels must resolve the subsidies issue.
Foreign ministry spokesman Lin Jian warned:"China will take all necessary measures to firmly safeguard its legitimate rights and interests."Europe's automotive sector is the jewel in its industrial crown - boasting iconic brands such as Mercedes and Ferrari - but it faces threats including China's head-start in the switch to electric.
"The European Commission's punitive tariffs hit German companies and their top products," German transport minister Volker Wissing wrote on X. China is an important market for German car makers, while Hungary, which a month ago hosted a visit by Chinese President Xi Jinping, is clearing land for a BYD factory to be built next year. Geely is the parent company of Swedish-based auto manufacturer Volvo.