European Union to slap additional tariffs up to 38.1% on imported EVs made in China as soon as July 5

European Union to slap additional tariffs up to 38.1% on imported EVs made in China as soon as July 5

The European Commission (EC) announced a few days ago its provisional decision to increase tariffs on electric vehicles (EVs) manufactured in China and exported to the European Union (EU). The decision comes following an investigation launched by Brussels, Belgium last year into Chinese electric car subsidies, which were deemed to be unfair to Europe’s carmakers.

In a statement issued by the EC, the hiked tariffs will be applied by July 5 this year at the latest and will be added to the existing tariff of 10%. The additional tariffs that Brussels will apply will range from 17.4% to 38.1% depending on how well EV manufacturers cooperated with EU investigators.

According to The Guardian, SAIC Motor has been slapped with the highest tariff of 38.1%, while Geely and BYD face a tariff of 20% and 17.4% respectively. Some automakers like BYD are ahead of the curve with plans to set up plants in Europe, including in Hungary.

“The European Commission is right to be concerned about the competitiveness of the EU as a manufacturing hub and the challenges posed by Chinese manufacturers, but tariffs can only provide a temporary respite and bear the risk of retaliation,” said CLEPA (European Association of Automotive Suppliers) secretary general Benjamin Krieger.

European Union to slap additional tariffs up to 38.1% on imported EVs made in China as soon as July 5

“Global trade requires a level playing field and may necessitate corrective measures. However, protectionism cannot be the answer to restoring European competitiveness. Consolidated efforts are needed to make the EU attractive again for investment,” he added.

The EC also said in its release that China’s automotive market represents a third of the global industry, adding that many European suppliers provide components and systems to both international and Chinese automakers for use in vehicles.

Lower-cost EVs entering Europe have been challenging offerings from European automakers. As reported by Reuters, the EC estimates the share of made-in-China EVs has rise to 8% from below 1% in 2019 and could rise to 15% by 2025. It noted that the prices of EVs imported from China are typically 20% below those made in the EU.

The tariff hike poses a problem to German automakers that have a presence in China, with the German Chamber of Commerce (GCC) claiming the tariffs are not in favour of the global auto industry. Norway and Hungary have also voiced their opposition to the tariff hikes.

European Union to slap additional tariffs up to 38.1% on imported EVs made in China as soon as July 5

“Now what is the goal, if you implement those [tariffs] to protect the industry, but the industry says they do not want this protection?” As we need the Chinese market to remain open, therefore we are also longing to keep the European market open,” said Maximilian Butek, executive director of the GCC in East China.

China is an important market for German automakers such as Mercedes-Benz, BMW and Volkswagen, which have joint ventures with local partners and are heavily invested in the new energy vehicle (NEV) industrial chain abroad.

The EU’s move is not dissimilar to that of the United States, which said in May that tariffs on China-made EVs would be increased from 25% to 100%. China has said previously that it would temporarily raise tariffs on large-engine cars – including those from the European Union (EU) – in response to the West’s attempt to limit the import of Chinese-brand EVs.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.



  • LoneOpinion on Jun 18, 2024 at 2:13 pm

    Good move.. Protecting national interests..

    Like or Dislike: Thumb up 5 Thumb down 6
  • ROTI CANAI on Jun 18, 2024 at 2:14 pm

    China ev companies will just open factories in Europe. Tesla has their Berlin gigafactory. It’s the European carmakers banking on cheaper manufacturing costs in Asia that will suffer.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Dah Menang Semua on Jun 18, 2024 at 2:20 pm

    Is OK one
    China got money
    Counter with subsidy

    Like or Dislike: Thumb up 5 Thumb down 0
  • CHINA Are not stupid on Jun 18, 2024 at 3:24 pm

    Malaysians for sure didnot receive any tongkat subsidies from Middle kingdom (Feeding the Monkeys in forest)

    IF that the case, WHY cant EU cannot gives subsidies to communists to buy Cheap Mercedes-Benz, BMW and Volkswagen.

    Like or Dislike: Thumb up 1 Thumb down 1
  • Peppa on Jun 18, 2024 at 3:34 pm

    I love this so much. Hope many countries come to slap china till they ‘retreat’ from Malaysia

    Like or Dislike: Thumb up 4 Thumb down 12
    • oku brain on Jun 21, 2024 at 11:43 am

      china sell you cheap cars you don’t want, then you prefer to pay more to buy cars?

      Like or Dislike: Thumb up 0 Thumb down 0
    • tkling on Jun 22, 2024 at 10:28 pm

      you mean pull back investment in Proton? How about if other countries slap our product with heavy import tax?

      Like or Dislike: Thumb up 0 Thumb down 0
  • Mr Wick on Jun 18, 2024 at 5:20 pm

    Who is Butek?

    Like or Dislike: Thumb up 1 Thumb down 0
  • EU already crisis, need job right?
    mana boleh no CKD in EUrope?

    Like or Dislike: Thumb up 2 Thumb down 0
  • Mike Tee on Jun 19, 2024 at 10:21 am

    Not all Teslas sold in Europe are made in Giga Berlin. Tesla DE has already announced price increment on their website.

    Gun, shot, foot, own

    Like or Dislike: Thumb up 1 Thumb down 0

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