Large additional tariffs imposed by the European Union (EU) on the import of electric vehicles (EVs) from China have come into effect as of Wednesday (October 30th) after talks between the two sides failed to reach an agreement.
Amounts vary depending on manufacturer and come on top of pre-existing levies of ten percent for EV imports, meaning some cars face total charges of up to 45.3 percent.
The measures were formally approved and published in the EU's Official Journal on Tuesday and will remain in place for the next five years.
Tariffs for named brands that manufacture vehicles in China apply as follows:
- SAIC: 35.3 percent
Geely: 18.8 percent
BYD: 17 percent
Tesla: 7.8 percent
In addition, other brands that have cooperated with a European Commission (EC) investigation into the market, but were not individually named, face duties of 20.7 percent, while 'uncooperative' importers are subject to a 35.3 percent tariff.
China's commerce ministry said it "does not accept" the new tariffs, adding: "The EU’s anti-subsidy investigation on Chinese electric vehicles has many unreasonable and non-compliant aspects, and is a protectionist practice of unfair competition."
The ministry noted it would take "all necessary measures" to protect the interests of Chinese companies, which is likely to involve retaliatory duties on imports of EU goods such as brandy, pork and dairy products.
Despite the failure of talks so far, Reuters reports that discussions are set to continue between the two sides even after the imposition of tariffs. It noted that there have been eight rounds of technical negotiations between the two sides, with a further set of talks agreed last week.
One possible solution under debate is the introduction of a minimum price commitment for imported cars, which may go some way to addressing the EU's concerns that cheap, subsidized imports from China will undercut the offerings of domestic manufacturers. However, the EC has said there remain "significant" gaps between the two sides, so any agreement appears to be some way off.
