One of the news of the year was the imposition of tariffs on Chinese cars by the European Union. This measure was considered a measure to protect the continent’s industry before the alleged unfair advantage that the companies there have. After taxing up to 35% on their products (depending on how cooperative they have been), there has been some tension. So much so, that China is not satisfied and has denounced formally European tariffs before the World Trade Organization (WTO).
The Asian country alleges before Brussels that it is a measure of “trade protectionism» and that the tariffs lack a «factual and legal» basis. For them it is understood as an abuse of the European Union and urges them to “face their mistakes and immediately correct their illegal practices.” They have also spoken in this meeting that the purpose should be jointly maintain stability of the global electric vehicle supply chain and economic and trade cooperation between China and Europe.
And, after several months of negotiations and adjustments to the regulations, these tariffs emerged from the discord: imposed by Europe and not accepted by China. We see that affects all vehicles manufactured there that reach the European market and range from the 35.3% paid by SAIC and others that have not collaborated. For Geely it remains at 18.8%, for BYD at 17% and Teslas manufactured in China have 7.8% tariffs. Are lower percentages than expected initially, but they are still significant amounts.
Meanwhile, there is still dialogue between both parties, who seek some understanding. There is talk of a compromise on prices by the Chinese authorities, although significant differences between both parties remain. In no case are they interested in trade wars, since with a direct confrontation there would be up to 739 billion euros at stakewhich is what was exchanged between both regions in 2023. We will see how this issue and the resolution of the World Trade Organization turn out.
