It's now official, the European Commission confirmed this week the imposition of additional customs duties of up to 45.3% on electric vehicles imported from China. These taxes, which are in addition to a standard 10% import duty, apply immediately, following a year-long investigation into Chinese subsidies.
France is for, Germany is against
According to the Commission, these measures aim to restore a level playing field for the European automotive industry, believing that subsidies provided by China, such as discounted financing and supplies for batteries and raw materials, distort competition.
In response, China's Ministry of Commerce expressed its displeasure, calling the European tariffs ” protectionists “. He hopes to avoid an escalation of trade tensions, even if China is considering retaliatory measures, which has already started with the opening of investigations into imports of certain European products such as cognac and dairy products. The country also took the case to the World Trade Organization, challenging the European measures.
This decision from Brussels comes at a time when the presence of Chinese vehicles, often sold up to 20% cheaper than their European equivalents, is increasingly worrying manufacturers in the Old Continent. According to the European Commission, Chinese manufacturers benefit from advantages which allow them to mass produce at reduced prices.
Beijing thus has an excess annual production capacity of three million electric vehicles, or twice the size of the European market. These surpluses, due to 100% import taxes in the United States and Canada, are massively directed towards Europe, which increases the pressure on European producers.
Within the EU, Brussels' decision has divided member states. Germany, the bloc's largest economy and a major automotive power, strongly opposes the new customs duties, fearing Chinese retaliation which would affect its own exports. The German automobile industry association denounced the measure, saying it could worsen trade tensions and harm the competitiveness of European manufacturers.
« The sector is not naive to the challenges posed by China, but these issues must be resolved through dialogue “, declared Hildegard Müller, president of the association. She adds that these tariffs risk threatening jobs in the European automotive sector.
On the other hand, France, through the Automotive Platform, welcomed the Commission's decision, believing that it supported free competition as long as it remained fair. The organization considers that these tariffs are essential to avoid a weakening of European industry in the face of the rapid rise of Chinese manufacturers, whose market share increased from less than 1% in 2019 to 8% this year, with a projection of 15% by 2025.
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