European Union To Impose Tariffs On Imported Chinese EVs

Last month, the European Union announced that it was thinking about increasing its tariffs on imported Chinese EVs, shortly after the U.S. did precisely that same thing amid concerns over unfair trade practices and potential national security concerns. However, the EU was also adamant that it was exploring other avenues as well, and a group of officials actually met with companies that make these cheap Chinese EVs in an attempt to find some common ground – though it doesn’t appear as if that effort panned out – at least, not yet.

According to Reuters, the European Union has in fact decided to raise tariffs on imported Chinese EVs by anywhere from 17.4 percent to 37.6 percent, though there is one major caveat – there is a four-month provision built into this legislation. This is because the EU will continue its talks with China and continue to try and find another resolution, as that country has also threatened to increase tariffs on a variety of European imports in a retaliatory measure. Officials from Beijing previously said the country will take “all necessary measures” to safeguard its interests.

“Our aim is to … ensure fair competition and a level playing field,” said EU trade chief Valdis Dombrovskis. “Those talks with China are ongoing and indeed should a mutually beneficial solution emerge, we can also find ways not to apply at the end of the day the tariffs. But it is very clear this solution (would) need to solve that market distortion that we are currently having … and it needs to be market compliant.”

Though most within the automotive realm supported the U.S. government’s decision to raise tariffs on Chinese EVs, a few analysts don’t believe that it will be enough to stop those vehicles from harming the American auto market. Regardless, Ford has been working on a low-cost EV platform to combat cheap Chinese EVs for over two years now, which was inspired by a trip that CEO Jim Farley took to the country some time ago.

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