The European Commission announced on Tuesday the imposition of additional tariffs on electric vehicles with batteries manufactured in China that are imported into the European Union. Tesla cars manufactured in the Asian country will face a tariff of 9% of their value, while other companies in the sector will be subject to tariffs ranging from 17% to 36.3%.
These tariffs are in addition to the existing 10% tariff approved by Brussels, which applies to all electric vehicles imported into the EU from abroad, regardless of the manufacturer. Therefore, Chinese brands that manufacture their vehicles within the EU (for example, those produced by Chery at the former Nissan factory in the Zona Franca industrial area of Barcelona) will be exempt from these tariffs.
The tariffs will come into effect on October 30th unless any EU member state opposes them after the consultation period with stakeholders. Additionally, they will not be applied retroactively.
The EU justifies these tariffs based on the state aid received by companies operating in China, which Brussels believes puts their European competitors at a disadvantage. The decision to impose these new tariffs comes after a period during which multinational companies provided information to European lawmakers, including on-site inspections of their facilities in China.
Tesla emerges as the most favored company under these tariffs. The tariffs imposed by Brussels are lower than those in the initial draft presented by the Commission last June. Therefore, the American company Tesla has received a more favorable level compared to other companies analyzed for potential aid from Chinese authorities. The 9% tariff imposed on Tesla by Brussels is substantially lower than what has been approved for companies headquartered in China. The Commission stated, „Tesla submitted a substantiated request for an individual examination to determine its tariff level based on specific subsidies received. This request has been thoroughly examined, and the conclusion on the level of subsidies received is reflected in the tariff levels.“
SAIC leads the tariffs with 36.3%, the same rate that will apply to other companies that do not cooperate with European authorities. The Commission has opted for a tariff of 19.3% for Geely and 17% for BYD, while other companies that cooperate with the EU will receive a 21.3% tariff. The Commission stated, „Any difference in tariff levels reflects the various subsidy levels“ among the different manufacturers.
In conclusion, the European Commission’s decision to impose additional tariffs on electric vehicles from China aims to address the issue of state aid and level the playing field for European competitors. The varying tariff levels for different companies reflect the specific subsidies received and the level of cooperation with EU authorities. This move will have implications for the electric vehicle market and could potentially impact the competitiveness of different manufacturers in the EU.