EU to Hike Tariffs on Chinese EVs by 38%
EU to Hike Tariffs on Chinese EVs by 38%
The Facts
The EU announced Wednesday its plan to impose additional tariffs of up to 38.1% on Chinese electric vehicles (EVs) on top of the already-existing 10% tax on cars. This includes a base tariff of 21%, with EVs made by specific companies facing the 48% mark.
The new tariff, which would equal over €2B (US$2.16B) in taxes per year, follows an investigation into alleged unfair trade practices by China, including companies such as BYD and Geely, which owns part of the Swedish brand Polestar, and British company MG.The EU announced Wednesday its plan to impose additional tariffs of up to 38.1% on Chinese electric vehicles (EVs) on top of the existing 10% tax on cars. This includes a base tariff of 21%, with EVs made by specific companies facing the 48% mark.
The Spin
China is clearly not playing by the rules regarding its domestic subsidies, which allow Chinese car companies to sell cars at twice the rate in Europe as they do at home. While Europe would love to engage in free and fair market competition, EU leaders cannot stand by and watch as their innovators and workers are pushed out of business thanks to China's economic schemes.
With global demand for new technologies and the resources required to build them, China is fostering a domestic culture of innovation, which has resulted in world-renowned EVs that Europeans love to buy. Instead of taxing Chinese cars, the EU should implement its own policies to boost European manufacturers, which would create even more competition.
The EU wouldn't have this problem if it didn't dive into the green energy fad so blindly. The initial EV boom in northern Europe was sparked by bountiful government subsidies, but the subsequent spending spree ended far sooner than expected. This is why companies like Mercedes and Renault won't be achieving their EV transition goals until well into the next decade.
