The European Union (EU) has imposed provisional tariffs on electric vehicles (EVs) imported from China, citing concerns over unfair subsidies provided by the Chinese government. These duties, ranging from 17.4% to 38.1%, aim to address the competitive imbalance caused by state aid that allows Chinese manufacturers to undercut prices in the European market. Brands like BYD, Geely, and SAIC, along with Western companies that produce vehicles in China (such as Tesla and BMW), are affected by the tariffs.
The decision follows an eight-month investigation by the European Commission, which found that Chinese EVs had captured a significant market share in Europe, rising from 3.9% in 2020 to around 25% by 2023. European officials argue that these tariffs are necessary to protect local automakers and jobs, particularly given concerns that the situation could mirror what happened with Chinese solar panels, which decimated European producers.
While the tariffs are provisional and subject to a final decision by November, there is potential for negotiation between the EU and China. The move has already sparked outrage from Beijing, which views the tariffs as protectionist and has threatened retaliation, including tariffs on European goods.
The EU’s approach differs from the U.S., which has imposed much steeper tariffs (up to 102.5%) on Chinese EVs. European officials emphasize that they still want to maintain access to affordable EVs but aim to level the playing field to protect the domestic industry from unfair competition.