The EU introduces punitive tariffs on Chinese electric cars

The duty rates vary from 17.4 to 37.6 percent. This is added on top of the current duty of 10 per cent and will be introduced already on Friday.

The company BYD receives a penalty duty of 17.4 per cent, Volvo owner Geely 19.9 per cent, while state-owned SAIC receives an additional duty of 37.6 per cent.

The European Commission does not fear that this will lead to electric cars becoming more expensive, which could delay the green shift. It is about protecting the European car industry and jobs by ensuring a level playing field, says the commission.

The Commission emphasizes that the electric car industry in China benefits from “unfair subsidies” from the Chinese authorities, which they believe can harm manufacturers in EU countries.

Talks between representatives of the EU and China have been going on for a long time, and will continue until the decision in October, according to the European Commission.

If the member states agree to permanent tariffs on Chinese electric cars, these will apply for five years.

EU Trade Commissioner Valdis Dombrovskis says that he sees no reason for retaliation from the Chinese side.

Chinese authorities say they will “use all possible means to safeguard Chinese interests”, according to Reuters.

The duty must be collected in the form of bank guarantees, which may have to be paid when a final decision is made in October.