Chinese Automakers Calls For Retaliation As EU Imposes Anti-Subsidy Tariffs

As Chinese electric vehicles (EVs) are making headlines for being imposed tariffs by the European Union (EU), the escalating trade tensions between China and the EU over EV imports have prompted Chinese automakers to urge their government to implement retaliatory tariffs on gas vehicles imported from Europe.

Chinese Automakers In Action

The call for countermeasures came during a meeting organized by China’s Ministry of Commerce, where Major automakers like SAIC, BYD, BMW, Volkswagen, and Porsche were in attendance, according to the Global Times. Moreover, the meeting also saw attendance by Mercedes-Benz, Stellantis, and Renault according to Asia Financial.

In the meeting, Chinese automakers pushed for their government to “adopt firm countermeasures” against the EU by raising import tariffs on European gas vehicles, particularly those with larger engine displacements. Furthermore, the meeting aimed to lobby against recent EU tariffs imposed on Chinese EVs exported to the bloc’s markets.

In addition, Chinese automakers specifically suggested raising provisional tariffs on European gas vehicles with engines larger than 2.5 liters from the current 15% to 25% according to the Global Times late last month. This would result in targeting Germany, the EU’s largest exporter of large-engine vehicles to China.

EU’s Tariffs On Chinese EVs

Recently, the European Commission officially announced anti-subsidy duties of up to 38.1% on imported Chinese EVs, effective July 4, 2024. It also announced individual tariff charges to BYD at 17.4%, Geely at 20%, and SAIC at 38.1%. As a result, these actions prompted Chinese automakers to find strategic shifts to their EV strategies.

Notably, the EU’s move to impose tariffs follows a similar action by the United States (U.S.), which increased tariffs on Chinese EVs from 25% to 100%, signaling a united front from Western nations concerned about China’s ascendant EV industry.

As the trade dispute escalates, both sides face economic pressures, with the EU aiming to protect its domestic EV industry and China seeking to maintain access to European markets for its rapidly growing EV exports. With both sides resolving this impasse through discussions that could prove challenging, the obstacles ahead of Chinese EVs will remain until solutions are found.

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