SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

EU threatens China with electric car tariffs in July

The EU is threatening China with tariffs of up to 38 per cent on the import of electric cars. Everything comes into force in July – if China does not act. But the German government is not pleased.

» Updated: July 16 2024

» Published: June 12 2024

EU threatens China with electric car tariffs in July
Photo: Chen Jianli/Xinhua/AP

EU threatens China with tariffs of up to 38 per cent on imports of electric cars.

Everything is introduced in July – if China does not act.

But the German government is not pleased.

The EU Commission believes that Chinese state subsidies "pose a threat of economic harm to European electric car battery producers". However, there will not be an immediate tariff, even though the investigation is now complete.

On the basis of this, the Commission has now turned to Chinese authorities to discuss what has been discovered and explore possible paths towards a solution, says EU Commissioner Margaritis Schinas at a press conference in Brussels, following colleague Valdis Dombrovskis informing about the investigation that has been ongoing since last autumn.

The ball is clearly in China's court to prevent the tariffs from becoming a reality.

Introduced in July?

It is already being presented how high the tariff will be: 17.4 per cent for manufacturer BYD, 20 per cent for Volvo owner Geely, and 38.1 per cent for SAIC.

For other producers, tariffs of 21 and 38.1 per cent are being flagged, depending on whether they have cooperated with the EU's investigators or not.

"If the discussions with Chinese authorities do not lead to an effective solution, these provisional anti-dumping duties will be introduced from 4 July", says the Commission.

The EU's tariffs were expected even before the European elections, but are said to have been postponed due to disagreements and strong pressure, not least from Germany.

The government there is not satisfied.

"Cars need to become cheaper through more competition, open markets, and significantly better business conditions in the EU, not through trade wars and market isolation", writes Germany's Transport Minister Volker Wissing, from the liberal FDP, on X.

Countermeasures

China has already warned of the consequences.

This is against the principles of market economy, the rules of international trade, and undermines both the economic and trade cooperation between the EU and China as well as global car production, says Chinese Foreign Ministry spokesman Lin Jian, according to AFP.

China has previously warned of countermeasures in the form of tariffs on European agricultural products, aircraft parts, and cars. China has also already initiated investigations into whether to impose tariffs on certain types of spirits from Europe.

EU Commission President Ursula von der Leyen already warned in her annual State of the Union address in September 2023 about an upcoming investigation into Chinese electric car subsidies.

A formal investigation was launched on 4 October last year to examine the import of battery-driven electric cars.

Now that the report is complete, tariffs of between 17 and 38 per cent are being flagged, in addition to the current tariffs of 10 per cent.

The USA has simultaneously recently flagged its own tariffs on Chinese electric cars of between 25 and 100 per cent.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Snus Delivery Strike Looms as Union Holds Firm on Notice

Snus Delivery Strike Looms as Union Holds Firm on Notice

EU Investigates Star Stable for Allegedly Deceiving Kids Out of Money

EU Investigates Star Stable for Allegedly Deceiving Kids Out of Money

Russia Holds Steady on Interest Rate Amid High Inflation Concerns

Russia Holds Steady on Interest Rate Amid High Inflation Concerns

Social Democrats Criticize Increased ROT Deduction as Ineffective

Social Democrats Criticize Increased ROT Deduction as Ineffective

Sweden Unveils Updated Food Strategy to Boost Domestic Production

Sweden Unveils Updated Food Strategy to Boost Domestic Production

Tele2 Gains Amid Stockholm Stock Exchange Downturn

Tele2 Gains Amid Stockholm Stock Exchange Downturn

Germany's Major Loans Drive Up Interest Rates Across Europe

Germany's Major Loans Drive Up Interest Rates Across Europe

Asian Markets Diverge Amid Fed Signals and Trade Uncertainty

Asian Markets Diverge Amid Fed Signals and Trade Uncertainty

Sweden's Rent Hike Slows in 2025 but Remains a Struggle for Many

Sweden's Rent Hike Slows in 2025 but Remains a Struggle for Many

Heathrow Closure Disrupts Travel for Hundreds of Thousands After Fire

Heathrow Closure Disrupts Travel for Hundreds of Thousands After Fire

Akelius Foundation and Partners Raise 125 Million Kronor for Gaza Education

Akelius Foundation and Partners Raise 125 Million Kronor for Gaza Education

Snus Deliveries Secure as Strike Notice Withdrawn in Sweden

Snus Deliveries Secure as Strike Notice Withdrawn in Sweden

Navigating Mortgage Decisions Amid Economic Uncertainty

Navigating Mortgage Decisions Amid Economic Uncertainty

Svantesson Urges Shared Responsibility to Tackle Rising Food Prices

Svantesson Urges Shared Responsibility to Tackle Rising Food Prices

Tesla Recalls Cybertrucks, Market Dips Amid Fed Rate Hold

Tesla Recalls Cybertrucks, Market Dips Amid Fed Rate Hold

EU Delays Bourbon Tariffs, Seeks Talks with Trump Administration

EU Delays Bourbon Tariffs, Seeks Talks with Trump Administration

Bank of England Holds Interest Rate Steady Amid Inflation Concerns

Bank of England Holds Interest Rate Steady Amid Inflation Concerns

Geely's Profit Soars in 2024 with Strategic Shift and Sales Boost

Geely's Profit Soars in 2024 with Strategic Shift and Sales Boost

Coop Syd Cuts 160 Jobs Amid Ongoing Boycott in Sweden

Coop Syd Cuts 160 Jobs Amid Ongoing Boycott in Sweden

Mercedes CEO Calls for Zero Tariffs to Boost US-EU Trade

Mercedes CEO Calls for Zero Tariffs to Boost US-EU Trade

Switzerland Nears Zero Interest Rate as Central Bank Cuts Again

Switzerland Nears Zero Interest Rate as Central Bank Cuts Again

Swedish Central Bank Holds Steady on Interest Rates Amid Inflation Concerns

Swedish Central Bank Holds Steady on Interest Rates Amid Inflation Concerns

Swedish Central Bank Holds Rates Steady, Ready to Act on Inflation

Swedish Central Bank Holds Rates Steady, Ready to Act on Inflation

Ericsson Gains Amid Stockholm Stock Exchange Dip

Ericsson Gains Amid Stockholm Stock Exchange Dip

Sweden Tackles Rising Food Costs: Government Meets with Industry Leaders

Sweden Tackles Rising Food Costs: Government Meets with Industry Leaders

China Holds Steady on Interest Rates Amid Economic Challenges

China Holds Steady on Interest Rates Amid Economic Challenges

Trump Calls on Fed to Lower Interest Rates Amid Economic Uncertainty

Trump Calls on Fed to Lower Interest Rates Amid Economic Uncertainty

Rising Trend: 1 in 5 Swedes Boycott American Brands

Rising Trend: 1 in 5 Swedes Boycott American Brands

U.S. Stock Markets Surge as Fed Holds Interest Rates Steady

U.S. Stock Markets Surge as Fed Holds Interest Rates Steady

Fed Holds Interest Rates Steady Amid Economic Uncertainty

Fed Holds Interest Rates Steady Amid Economic Uncertainty

Sweden's Finance Minister Pushes for Lower Food Prices Amid Talks

Sweden's Finance Minister Pushes for Lower Food Prices Amid Talks

Sweden's Economy Faces Higher Unemployment Despite Growth Signs

Sweden's Economy Faces Higher Unemployment Despite Growth Signs

Another Major Bank Raises Mortgage Interest Rates

Another Major Bank Raises Mortgage Interest Rates

European Inflation Revised Downward

European Inflation Revised Downward

Stockholm Exchange Sees Slight Gains Amid Mixed European Markets

Stockholm Exchange Sees Slight Gains Amid Mixed European Markets

More and more rush to declare

More and more rush to declare

Inflation Expectations Rise

Inflation Expectations Rise

Wallenberg does not believe in state rescue of Northvolt

Wallenberg does not believe in state rescue of Northvolt

Hard to find an apprenticeship for vocational programs

Hard to find an apprenticeship for vocational programs

Record win for Skistar: Prioritizing the mountains

Record win for Skistar: Prioritizing the mountains