The EU Will Place Stout Tariffs On Chinese EVs Starting in July

Chris Teague
by Chris Teague

President Biden made news earlier this year when he announced heavy tariffs on Chinese EVs, but the Americans won’t be the only ones imposing tariffs on vehicles from the country. The European Union plans to add as much as 38.1 percent on EVs shipped from China this summer, though individual duties on automakers will vary.

BYD will see a 17.4 percent tariff, while Geely will receive 20 percent on top. SAIC’s vehicles will get the largest tariff, at 38.1 percent. Others will have a 21 percent duty, while those that did not comply with the EU’s investigation will be subject to the highest 38.1 percent tariff.

Though they’re not here yet, China’s EVs are on sale in Europe and have launched a price war with established brands there. The country has threatened retaliation over the measures, which could impact gas vehicles, agriculture, and more. China might also implement tariffs on European alcohol.

The EU’s actions will create stout tariffs on Chinese EVs, but they’re nowhere near as heavy as those imposed by the United States. Our government will levy a 100 percent tariff on electric vehicles from China, increasing from the existing 25 percent duty. Beyond privacy concerns with EVs from the country, of which there are many, the tariffs aim to bolster the U.S. manufacturing sector and create a more robust EV supply chain here.

[Images: Geely]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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  • Varezhka Varezhka on Jun 12, 2024

    And in the end, it won’t do anything because Chinese firms are already building battery factories within EU with Chinese government support.

    As long as the raw materials continue to come from China there really isn’t much EU can do too. They brought it upon themselves with their EV or bust policies (which itself was a reaction to their loss of grounds to the Koreans and the Japanese).

  • Redapple2 Redapple2 on Jun 13, 2024

    Lay a 20% tariff on all China goods as penalty for the damage from the China Virus.

  • V16 2025 VW GLI...or 2025 Honda Civic SI? Same target audience, similar price points. Both are rays of sun in the gray world of SUV'S.
  • FreedMike Said this before and I'll say it again: I'm not that exercised about this whole "pay for a subscription" thing, as long as the deal's reasonable. And here's how you make it reasonable: offer it a monthly charge. Let's say that adaptive headlights are a $500 option on this vehicle, and the subscription is $15 a month, or $540 over a three year lease. So you try the feature for a month, and if you like it, you keep it; if you don't, then you discontinue it, like a Netflix subscription. In any case, you didn't get charged $500 up front the feature. That's not a bad deal.In my case, let's say VW offers an over the air chip reflash that gives me another 25 hp. The total price of the upgrade is $1,000 (which is what a reflash would cost you in the aftermarket). If they offered me a one time monthly subscription for $50 to try it out, I'd take it. In other words, maybe the news isn't all bad.
  • 2ACL A good car, but - at least in this configuration -not one that should command a premium. Its qualities just aren't as enduring as those of Honda's contemporary sports cars. For better or worse, this is a formula they remain able to replicate.
  • Jalop1991 I just read that Tesla's profits are WAY down "as the electric vehicle company has faced both more EV competition from established automakers and a slowing of overall EV sales growth." This Cadillac wouldn't help Tesla at all, but the slowing market of EV sales overall means this should be a halo/boutique car. Regardless, yes, they should make it.
  • FreedMike It's just a damn shame that Alfa never conquered its' quality demons in time for the Giulia and Stelvio to hit the market - these are loaded with personality, and we need more product like that.