EU to Move Ahead With New Tariffs on Chinese-Made EVs

By Dominic Chopping

The European Union will impose tariffs of up to 45% on electric cars made in China, defying pleas from some European auto executives who fear retaliation from Beijing and an escalating trade war.

EU member states voted to approve the new import fees for the next five years in a move aimed at protecting European carmakers from subsidized Chinese-made vehicles.

The EU Commission has said the Chinese government unfairly subsidizes EV companies--including European carmakers who import EVs to Europe--at a level that undercuts competition, allowing carmakers in China to sell EVs for less than European-made vehicles.

But German car giant Volkswagen and others have come out against the tariffs, fearing reprisals from China that could include retaliatory import tariffs on European vehicles.

European carmakers including Volkswagen, BMW, Mercedes-Benz, and Stellantis all have a large presence in China, with most counting the country as their biggest market, but are battling fierce pricing and market-share pressure from homegrown manufacturers like BYD and Geely.

In Europe, a cooling EV market has also seen competition for customers intensify, especially as Chinese manufacturers have gained a foothold in the region and driven prices lower as they fight for a share of the market.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

October 04, 2024 05:48 ET (09:48 GMT)

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