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EU shocks China with EV duties of up to 38 percent

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: On Wednesday 12th of June, The European Commission published a decision to impose duties of up to 38.1 percent on electric vehicle imports from the beginning of July
• The Chinese Chamber of Commerce expressed “shock, grave disappointment and deep dissatisfaction with this protectionist measure by the [European Commission]”

🔭 The context: The tariffs represent a high-stake gamble by Ursula von der Leyen, considering she requires the backing of both Macron and Scholz, who have opposing views on the duties, to win a second term as the Commission president
• The EU already charges a duty of 10 percent on any foreign-made vehicle, versus China’s 15 percent level, meaning that at their highest, they would approach 50 percent

🌍 Why it matters for the planet: The EU is looking to protect its market share and to cancel out the unfair advantage Chinese carmakers enjoy thanks to generous state subsidies
• The raised tariffs are a bold geopolitical move potentially leading to an escalation of an already tense trade relationship between the EU and China

⏭️ What's next: The provisional duties are due to be confirmed in a vote by EU member states in a few months, and duties collected retroactively from March, starting in November
• It is unlikely that Germany would be able to gather sufficient support to overturn the decision

💬 One quote: The duty call “does not mark a move away from the bloc’s established model of economic efficiency, comparative advantage and open trade,” Economic policy expert Simone Tagliapietra argues. “It really is about leveling the playing field”

📈 One stat: Car models made by BYD face a 17.4 percent mark-up, with Geely seeing 20 percent and SAIC the highest of 38.1 depending on the results of the Commission inspection earlier this year

Click for more news covering the latest on mobility tech  

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