The European Union has announced that it will be adding extra tariffs of up to 38 percent on electric cars manufactured in China. This decision is aimed at creating a more level playing field for European automakers. The tariffs, which were widely anticipated, will be in addition to the existing 10 percent duties.
Many European car manufacturers had expressed concerns that these tariffs would lead to an increase in prices for consumers and possibly trigger a trade war with China. However, some experts believe that these tariffs will not be sufficient to challenge China’s dominance in the electric car industry. They argue that instead of imposing tariffs, the European Union should focus on providing incentives to make low-emission vehicles more appealing to consumers.
The European Union’s investigation revealed that the entire supply chain of Chinese electric cars benefits from government subsidies, allowing Chinese automakers to significantly reduce their production costs. This gives them an unfair advantage over their European counterparts. For example, the BYD Dolphin model is priced at around 32,400 euros in Europe, while a Tesla Model Y costs nearly €40,000 and a Volkswagen ID.4 costs €37,000.
Industry experts predict that these increased tariffs on Chinese electric vehicles will have a greater impact on consumers by raising the prices of the most affordable electric cars on the market. Despite the concerns raised by European automakers, the European Union believes that these tariffs are necessary to address the unfair competitive advantage enjoyed by Chinese electric car manufacturers.
In order to achieve its goal of banning the sale of new internal combustion engine vehicles by 2035, the European Union will need to implement a range of measures to promote the adoption of low-emission vehicles. This includes providing subsidies and incentives to encourage consumers to choose electric cars over traditional vehicles.
The decision to impose additional tariffs on Chinese electric cars is just one step in the European Union’s efforts to promote the adoption of electric vehicles and reduce carbon emissions. It remains to be seen how this will impact the electric car market in Europe and whether it will lead to a more level playing field for European automakers.