EU is about to "follow" the US, dealing a new "blow" to Chinese electric vehicles

Less than a month after the US quadrupled tariffs to 100% on Chinese electric vehicles, the European Union (EU) announced that it would follow suit and impose tariffs on the product. However, the tax rate is expected to be much lower.

The EU is about to increase taxes on Chinese electric cars. (Source: Getty Images)

The European Commission (EC) is expected to raise tariffs on electric cars imported from China this week.

The information was released in the context of car manufacturers in the old continent facing fierce competition with cheap cars imported from the world's second largest economy .

The EU currently applies a 10% tariff on imported "made in China" electric cars.

Analysts predict the new tariffs will be in the range of 10-25%. Based on 2023 trade data, each additional 10% tariff on current levels would cost European importers of Chinese electric vehicles about $1 billion more.

The decision to increase tariffs is a temporary measure while the EU continues its anti-subsidy investigation into electric vehicles from the Asian country, which is expected to last until October.

Once the results are in, the final tariff will be applied, unless there is an objection from member countries.

Currently, electric cars produced in China imported into Europe are mainly from Western companies such as Tesla (USA), Dacia by Renault (France) and BMW (Germany).

However, the EC said that the market share of Chinese brands in electric vehicles in the EU has increased from less than 1% to 8%, and could reach 15% by 2025. The prices of these models are often 20% lower than European-made products.

Source: https://baoquocte.vn/eu-sap-theo-chan-my-giang-don-moi-voi-xe-dien-trung-quoc-274615.html