Previous investigations by the European Commission found that China engaged in predatory trade practices.
European Union (EU) Wednesday began to formally impose tariffs on electric vehicles in China following failed trade negotiations between the EU and Chinese officials.
According to Investigation by the European Commission The report, published in July, said Chinese EVs benefited from “unwarranted subsidies that pose the threat of economic harm” to EV manufacturers in the EU. The European Commission recommended broad preliminary tariffs on Chinese EV imports from several companies, but the EU said at the time that it supported resolving the trade dispute through diplomatic negotiations.
It appears that the negotiations have failed. The committee made the announcement on Monday. We will proceed with the formal imposition of obligations. Although the period is five years, the following have pledged to continue negotiations.
As previously disclosed, investigation finds that China’s (electric vehicle) value chain benefits from unfair subsidies, posing threat of economic damage to EU BEV producers did. As a result, this obligation will come into force the day after it is published in the Official Gazette.
In parallel, the EU and China continue to strive to find effective, WTO-compliant alternative solutions to address the issues identified in the investigation. The Commission will also continue to negotiate prices with individual exporters, as permitted by EU and WTO rules.
Chinese-made passenger car poses as highlighted in “On Collision Course” released earlier this year A major threat to the global car market. Benefiting from massive government subsidies and other unfair trade tactics, Chinese cars are priced far below fair market value. As we have warned, if these vehicles are allowed to penetrate the U.S. market, it will very likely lead to an “extinction-level event” for the U.S. auto industry.
some Notable exceptionChinese car companies have so far been unable to sell cars in the United States because of heavy trade tariffs imposed on car imports from China. In fact, the Biden administration just finalized significant tariff increases on several types of Chinese imports, including: 100% increase in Chinese EVspart of a strategic effort to prevent China from dominating the U.S. auto market.
Canada has also imposed a 100% tariff on EV imports from China. But other countries have been slow to act. As a result, Chinese cars are beginning to dominate these markets. Europe is also thereleading to action announced by Brussels this week.
Chinese entity Subject to countervailing trade duties This includes BYD, which is subject to a 17% tariff. Geely Automobile will be subject to an 18.8% tariff, and SAIC Motor will be subject to a 35.3% tariff. Tesla will face a 7.8% tariff, while other Chinese companies that cooperated with the EU investigation will face a 20.7% tariff. Non-cooperating companies will be subject to a 35.3% tariff.
