The ro-ro shipping market has been in rude health for the past couple of years moving its core commodity, cars, leaving limited space for heavy and project cargoes. However, the provisional imposition of steep tariffs on Chinese EVs could be another sign that the longer-term prospects for ro-ro are cooling.
Talks between the European Union (EU) and China have been ongoing for the past week, the former having undertaken a nine-month investigation into what it says are excessive and unfair subsidies for the Chinese auto market. The European Commission confirmed that it would introduce provisional duties on EVs produced in China ranging from 17.4 percent to 38.1 percent, on top of the standard 10 percent tariff for car imports, effective July 5, 2024.
“The EU side has emphasised that any negotiated outcome of the investigation must be effective in addressing the injurious subsidisation,” a commission spokesperson said.
Beijing has rejected the accusation, instead citing technological advances and industry supply chains as the cause of its booming automobile output. China has repeatedly called on the EU to cancel the proposed tariffs, and hinted that retaliatory tariffs beyond the automotive sector could follow.
Aside from a decrease in automotive shipments from China to Europe, tariffs could also prove the catalyst for more Chinese car manufacturers to set up shop in Europe, like BYD in Hungary.
