The European Commission is expected to reveal this week the tariff rate it plans to impose on Chinese electric vehicle exports. Previously, the United States had issued an announcement to impose Section 301 tariffs on China.The new tariff regulations will take effect on August 1. Among them, the tariff increase for electric vehicles is the highest, increasing from the original 25% to 100%.
According to reports, if the EU decides to impose tariffs, it will most likely be much lower than the tariffs set by the United States. Some analysts revealed that the tariffs imposed by the EU may be between 10% and 25%.
The European Commission estimates the share of electric vehicles sold by Chinese brands in the EU,It will rise from less than 1% in 2019 to 15% in 2025.
Moreover, the current selling price of Chinese brand electric vehicles is usually about 20% lower than that of locally manufactured models in the EU. The EU is trying to increase the resistance of local EU car companies to Chinese imported electric vehicles by imposing additional tariffs.
However, regarding the EU's imposition of additional tariffs on Chinese electric vehicles, the attitude within the EU is not uniform.
Executives from BMW, Mercedes and Volkswagen had previously warned the EU not to impose import tariffs on cars from China, which would continue to reduce the competitiveness of Chinese electric vehicles.
Moreover, for many German car companies, China is their largest sales market. If the EU decides to impose additional tariffs, the business of German car companies may be the first to be affected.
And countries like France and Italy,China does not have a large-scale automobile business. Instead, the EU is its main market. They unanimously agreed to impose tariffs to protect their local automobile companies.