Europe to impose surcharge on electric cars made in China from July 5, 2024

Europe to impose surcharge on electric cars made in China from July 5, 2024
Europe to impose surcharge on electric cars made in China from July 5, 2024

The European Commission has just confirmed the news: new customs duties on electric cars made in China will be applied from July 5, 2024. But not all manufacturers will be taxed in the same way. This is what European consumers should expect.

Following the anti-subsidy investigation into Chinese electric cars, the European Commission has decided to increase customs duties at the EU’s borders. According to the institution’s press release, new provisional taxes will apply from 5 July 2024. Definitive customs duties are expected in November.

Customs duties

Until now, manufacturers who manufactured electric models in China had to pay a 10% tax. Starting tomorrow, this rate will be revised upwards, but it will not be the same for everyone.

As part of its investigation, the Commission contacted the various manufacturers in the Middle Kingdom. They were invited to cooperate and to be sampled. Three Chinese manufacturers have already passed these two stages. They therefore know their exact rate. This is the case for MG, a brand owned by SAIC. Electric MGs will be taxed at a rate of 47.6%. This will be 29.9% for vehicles belonging to Geely (Volvo and Smart) and 27.4% for those of the giant BYD. Note that the rates have slightly decreased compared to the first announcement made in mid-June.

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Other Chinese manufacturers that cooperated with the investigation but have not yet been sampled will be subject to an average tax of 30.8 percent. While companies that did not cooperate will be subject to a flat levy of 47.6 percent.

China injected 215 billion euros

These taxes will be applied until Brussels and Beijing have reached an agreement. With its Model 3 manufactured in China, Tesla will also be included in the list of brands affected by these new customs duties. The American firm has made a request to be sampled and the publication of its rate should not be long in coming.

European investigators have concluded that the Chinese government has subsidized its automobile industry to a disproportionate extent (around 215 billion euros). What “ cause economic harm to car manufacturers in the European Union “This is why the Union has decided to introduce this new temporary tax.

Valdis Dombrovskis, Executive Vice-President of the European Commission, said: “ We continue to discuss with China to find an acceptable solution “. According to him, ” Whatever the final decision, it must clearly and fully address the concerns of the European Union and respect WTO rules. ».

Germany will do everything to find a compromise

A recent report by the Kiel Institute showed that tariffs could help reduce imports from China by 25%. But Beijing is trying to divide member states, whose interests can sometimes diverge. Germany, the cradle of the automobile “, is putting pressure on the Commission to try to find a compromise.

Europe’s largest country (in terms of population) fears for its industry and wants to avoid reprisals for its manufacturers at all costs. In 2024, China will still be the largest market for Mercedes, Volkswagen and BMW. If Beijing were to increase taxes on models from the Old Continent, it would be a real earthquake in Germany.

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For his part, the boss of Renault is rather in favour of the implementation of these new taxes on electric models made in China. Luca de Meo recently called for a “European mobilisation”. According to him, the competition is unbalanced. He believes that there are too many differences in energy costs and salaries between the Union and China.

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