The EU is set to impose up to 35% tariffs on electric vehicles from China to ensure fair competition amid fears of a market oversaturation. Despite opposition from some countries, most EU members support the tariffs as a necessary strategy to protect European manufacturers against heavily subsidized Chinese competitors.
As the European automotive sector faces a crisis, EU member states have decided to impose additional customs duties on electric vehicles imported from China. Following a meeting, the European Commission announced it would implement tariffs of up to 35% on these cars, which will be added to an existing 10% tax. The new tariffs are expected to take effect by October 30. Meanwhile, ten EU countries, including France and Italy, supported this measure, while five, including Germany, opposed it due to concerns over potential retaliation from China. The EU aims to create fair competition against Chinese manufacturers, who are seen as heavily subsidized, particularly in the electric vehicle market where China leads in technology, especially battery production. Tesla vehicles manufactured in Shanghai will face a 7.8% tariff, while BYD will incur a 17% surcharge. Cars from Geely and SAIC will bear a 35.3% tariff. Despite China’s strong lobbying efforts against the tariffs, the EU remains firm, but the tariffs are less severe than those imposed by the US and Canada. To circumvent these duties, some Chinese manufacturers are planning to establish production facilities in Europe, with Geely considering a plant in Poland and BYD in Hungary. The French automotive sector has reacted positively, stressing the need for competitive measures. Luc Chatel from the French Automotive Platform expressed that the sanctions are necessary, highlighting that a third of electric vehicles sold in France last year were from China. He insists on the importance of establishing partnerships with Chinese firms under clear rules. Renault’s Luca de Meo echoes this sentiment, emphasizing the technological advantages China can offer. Furthermore, Stellantis has collaborated with Chinese firm Leapmotor to market its cars in Europe, suggesting a strategic shift towards cooperation rather than confrontation with Chinese automakers.
The European automotive industry is undergoing significant challenges, leading EU leaders to impose additional tariffs on Chinese electric vehicles. The move is aimed at creating a level playing field for European manufacturers and counteracting the potential influx of cheaper Chinese electric vehicles, which have benefitted from Chinese government subsidies. The decision comes amid rising concerns about fairness in competition as China excels in electric vehicle technology, particularly in battery development, leading to lower prices for their vehicles.
In summary, the EU’s decision to impose increased tariffs on Chinese electric vehicles reflects a strategic move to ensure fair competition within the automotive sector. While some EU nations support this measure, others worry about potential backlash from China. The situation suggests a looming reevaluation of trade dynamics, with both European and Chinese companies exploring new collaborative opportunities to navigate these challenges.
Original Source: www.latribune.fr
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