We are still back to the topic of Chinese cars. The European Union feels that its car industry is under threat and did not hesitate to impose a series of tariffs on electric cars manufactured in China. The argument is that they receive aid and subsidies from the Asian government which means that European cars cannot compete on equal terms.
Following the announcement of new tariffs on July 4, which imposed different amounts depending on the level of information provided by each manufacturer, a period was then opened which ended with new tariffs… which are not definitive, as they are still pending changes based on comments from interested parties:
- BYD: 17.0%
- Geely: 19.3%
- SAIC: 36.3%
- Other brands that have cooperated: 21.3%
- Other brands that have not cooperated: 36.3%
These figures add to the 10% tariff which the EU already applies to electric vehicles from China. And they are not conclusive, as we said, since interested parties have the possibility of requesting a hearing with the Commission services and submitting Comments until August 30th.
The Commission will then submit the final decision to the Member States, who will vote according to the procedure (with binding effect) and the definitive measures must be imposed no later than four months after the existing provisional imposition. This review is still pending, once it enters into force. will not have retroactive effect.
What can happen?
Beyond establishing a tax that affects different actors differently, there is the political aspect. Germany has been against it from the start and fought against tariffs, fearing a trade war… and for the interests of its manufacturers in China. France has been more in favour… at the same time that it slows down the advance of Chinese electric cars by limiting the subsidies they receive (a tactic that, by the way, works well). We analyse this situation in this video:
The key date is the October 30th. The final tariffs are then due to be published in the EU’s Official Journal. They would enter into force one day later for a period of five years, extendable upon reasoned request and subsequent review. We are at an intermediate stage of this kind of tug-of-war which, according to its authors, seeks to “give the parties involved a chance before reflecting the findings in the final proposal.”
