EU approves tariffs on Chinese electric vehicles

Chinese producers of electric vehicles will soon face steep tariffs before selling their high-end goods in the EU market. Ten EU countries voted in favour of the duties, with five voting against and 12 member states abstaining.

EU member states have cleared the way for the European Commission’s proposed tariffs on China-made electric vehicles (EVs). On Friday 4 October, opponents of the tariffs failed to secure the required votes to block the measures, allowing the Commission to impose duties of up to 35.3% on Chinese automakers, such as BYD, Geely, and SAIC, by the end of October. The tariffs will be applied in addition to the EU’s standard 10% levy on cars.

The vote had initially been scheduled for 25 September but was delayed to allow for further negotiations between Chinese and EU officials. The hope was to reach a deal where Chinese automakers would agree to sell their vehicles at a minimum price to avoid the new duties. Despite the vote, EU officials stated that a negotiated solution remains possible even after the 30 October deadline.

The Commission launched its anti-subsidy investigation on imports of battery electric vehicles in October 2023. The investigation revealed that Chinese automakers benefit from large state subsidies, enabling them to flood the European market with cheaper vehicles, undercutting European competitors.

Beijing has consistently denied the existence of subsidies and has threatened retaliatory measures, including tariffs on European exports such as pork, brandy, and dairy products. 

^{A man polishes a Seal car of Chinese car maker BYD © CHRISTOF STACHE / AFP}