The European Union will impose tariffs on Chinese battery electric vehicles (BEVs), Reuters reports.
The move to introduce tariffs follows a split vote by EU members, seeing opposition from Hungary and Germany, Europe’s biggest producer of automobiles.
Member states voting for the new taxes say this will protect the European car industry from being undermined by what they claim are unfair Chinese-state subsidies on its own vehicle production.
Beijing has rejected the accusation, instead citing technological advances and industry supply chains as the cause of its rising automobile output.
Tariffs on electric cars made in China are set to rise from 10 percent to up to 45 percent for the next five years, but there have been concerns such a move could raise electric vehicle (EV) prices for buyers.
According to Reuters, the European Commission said it is willing to continue negotiating with China a potential deal to avert tariffs on Chinese electric vehicles even after their imposition.
The move has already seen retaliation from Beijing, with China’s commerce ministry saying in a statement on Tuesday that it will impose new anti-dumping measures on European Union (EU) brandy imports, requiring a security deposit from EU brandy importers beginning on Friday.
This escalates the trade war between Beijing and Brussels just days after the bloc slapped higher tariffs on Chinese electric vehicles. In July, HLPFI reported on the provisional imposition of steep tariffs on Chinese EVs.
This marked a sign that the longer-term prospects for ro-ro were cooling. Aside from a decrease in automotive shipments from China to Europe, tariffs could also lead to more Chinese car manufacturers setting up shop in Europe, like BYD in Hungary.
