The EU todayconfirmedhuge new tariffs forEVs imported from China.
From Friday, provisional charges of between 17.4% and 37.6% will be imposed on the vehicles.
The lowest level will apply to BYD, an automaker based in Shenzhen.
Geely, which owns Volvo, Polestar, and Lotus, faces duties of 19.9%.
SAIC, a Chinese state-owned carmaker, will receive the maximum 37.6%.
Other companieswill be subject to new tariffs of 20.8%, the weighted average.
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These fees will come on top of a 10% duty that was already in place.
As a result, prices ofEVsin Europe could increase.
Beijing may also impose retaliatory measures.
Nonetheless, the EU argues that the intervention is essential.
Why is the EU imposing the new tariffs?
The charges are an attempt to protect the EU auto industry.
Beijing has been accused of creating unfair competition through illegal subsidisationof Chinese EV makers.
Last October, the EUopenedan investigation intothe matter.
EU car manufacturers and related sectors are already investing and innovating to fully develop this potential.
The EU has now concluded that the subsidies are indeed unfair.
With access to this state support, Chinese EV makers stand accused of artificially lowering prices.
According to Brussels, this threatens economic injury to the blocs carmakers.
Still, not everyone in the EU supports the charges.
Reactions in the EU
Government officials and carmakers have raised several objections to the tariffs.
Swedens prime minister fears the duties will escalate a wider trade war.
Germanys chancellor warned the measures will also harm EU companies that import EVs from China.
Hungary, which has forged a strong trade partnership with Beijing, has provided sterner rebukes.
Protectionism is not the solution.
Another critic is German car giant Volkswagen.
Negotiations continue
Inevitably, the EU has downplayed the concerns.
The blocs trade chief, Valdis Dombrovskis, said discussions with Beijing could still create a mutually beneficial outcome.
Our aim is to… ensure fair competition and level playing field, Dombrovskistold Bloomberg Newstoday.
Therefore, once again, we do not see any basis for retaliation.
Story byThomas Macaulay
Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he e(show all)Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he enjoys playing chess (badly) and the guitar (even worse).
