EU imposes temporary tariffs on Chinese electric cars amid subsidy dispute
(MENAFN) On Thursday, the European Union announced a provisional tariff of up to 38 percent on imported Chinese electric vehicles, according to the European Commission. This decision, which precedes a final determination set for November, stems from allegations that Beijing is providing illegal subsidies to its electric car manufacturers. The newly imposed tariffs are in addition to the existing 10 percent tariff already levied on Chinese automobiles and are scheduled to take effect on Friday.
The tariffs come as a result of an extensive investigation initiated in October 2023 into the Chinese government's support for its electric car industry. On June 12, Brussels declared the new tariffs and simultaneously opened discussions with Beijing in hopes of addressing the identified issues and mitigating the potential for a trade war. The European Commission has a four-month window to decide whether to make these tariffs permanent, suggesting the possibility of ongoing dialogue with Chinese authorities. If confirmed, the final tariffs would remain in place for five years.
This move by the EU mirrors actions taken by the United States, which announced in mid-May a significant increase in customs duties on Chinese electric vehicles, raising them from 25 percent to 100 percent. The European automotive sector, which has been dominant in the production of gasoline and diesel engines, is increasingly concerned about the potential decline of its industries in the face of a surge in Chinese-made electric vehicles, where China has established a notable lead.
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