After months of investigation, the European Union has announced additional tariffs on electric vehicles (EV) imported from China, because of what it sees as Beijing’s unfair support for companies that undercut European carmakers.
The decision deals a blow to the Chinese government, which had been lobbying hard against the taxes, and EV producers in the country. Most companies are facing hefty extra tariffs of between 17.4% and 38.1%, on top of the 10% duty already levied by the bloc.
The impact on China’s EV makers will vary depending on the level of tariff and each company’s cost structure. Those hardest hit may be forced to raise prices or set up factories in Europe.
And while Beijing is clearly unhappy, analysts say it’s unlikely to want to rush into a full-blown trade war with its second biggest trading partner, not least because of economic pressures at home.
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