EU heavily criticizes sharp tariffs on Chinese electric vehicles

(MENAFN) In a move aimed at protecting its domestic automotive industry, the European Union has imposed substantial new tariffs on electric vehicles imported from China following an extensive anti-subsidy investigation. The decision, announced by the European Commission on Thursday, introduces provisional additional duties ranging up to 38percent on Chinese electric cars for a period expected to last up to four months.

According to details released in a press statement, leading Chinese automakers like BYD and Geely, which owns Volvo, will face tariffs of 17.4percent and 19.9percent respectively. Other manufacturers that cooperated with the investigation will encounter an average duty of 20.8percent, while non-cooperating companies will bear a higher tariff of 37.6percent. These measures supplement the existing 10percent tariff already imposed on all Chinese electric car imports into the European Union.

The investigation, initiated nine months ago following concerns raised by European Commission President Ursula von der Leyen, concluded that China's battery electric vehicles (BEV) sector benefits from unfair government subsidies. This subsidy, according to the Commission, poses a significant economic threat to European car manufacturers, prompting the imposition of these protective measures.

A final decision on the tariffs is scheduled for November, with ongoing negotiations anticipated between Brussels and Beijing aimed at resolving the underlying trade dispute.

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