Tariffs of Up to 25% on Chinese EV Manufacturers Won’t Change Our Growth Outlook

Shares of Chinese electric vehicle manufacturers fell 4%-9% on June 12 in Hong Kong on news that the European Commission will provisionally apply additional tariffs of up to 25% on imported electric vehicles made in China starting next month, compared with the 10% standard import duties on EVs. The European Union launched an investigation in October 2023 into subsidies given to EV automakers in China. The EU accused Chinese automakers of unfairly benefiting from incentives and support from the Chinese government and such subsidies have raised overcapacity concerns. The commission alleged that subsidized car imports posed an economic threat to the healthy development of the EV industry in the EU.