The European Commission adopted a regulation yesterday imposing additional tariffs of up to 35% on Chinese-made electric vehicles, accusing manufacturers of unfair competition practices.
Despite Germany’s opposition, Brussels decided to add these new duties on top of the existing 10% tariff for battery-powered vehicles manufactured in China.
The five-year measure, published yesterday in the EU Official Journal, takes effect today.
China immediately rejected the decision, stating it “neither approves nor accepts” the ruling and has filed an appeal with the World Trade Organization (WTO).
A Chinese Commerce Ministry spokesperson said the country would “continue taking all necessary measures to firmly protect the legitimate rights and interests of Chinese enterprises.”
The EU aims to ensure fair competition with Chinese manufacturers, whom Brussels accuses of benefiting from massive state subsidies.
The measure seeks to protect European automakers and their 14 million jobs from what the EU considers unfair trading practices, following a lengthy Commission investigation.
Chinese electric vehicles’ market share in the EU has grown dramatically from less than 2% in 2020 to 14% in the second quarter of this year.
Germany and four other countries – Hungary, Slovakia, Slovenia, and Malta – voted against the Commission’s plan, whilst France, Italy, and Poland were among ten member states supporting it. Twelve others, including Spain and Sweden, abstained.
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