Currently reading: European Commission approves tariffs on Chinese EVs

Charges of up to 45% will be applied to Chinese electric cars for the next five years

The European Commission has voted to make large tariffs on Chinese-made electric cars permanent.

In a statement released by the Commission, it said that it has “obtained the necessary support from [European Union] member states for the adoption of tariffs” and that it represents the next step in its investigation into the subsidisation of EVs by the Chinese government.

It added that the EU will work with Chinese authorities to develop an “alternative solution” but this would have to be “adequate in addressing the injurious subsidisation established by the Commission's investigation”.

The Commission introduced temporary tariffs on Chinese EVs in July, following an investigation that found the nation’s car industry benefits from “unfair subsidisation”. It suggested that the introduction of Chinese electric cars that undercut those from European marques on price could “cause a threat of economic injury to EU BEV producers”.

MG owner SAIC was hit especially hard, having been accused of failing to co-operate with the Commission's investigation. It received the highest rate of 35.3% (down from a proposed 37.6%) on the wholesale price of its EVs, in addition to the 10% it was already being charged.

BYD is charged an extra 17.4% and Geely (which owns Lotus, Polestar and Volvo) incurs a 19.9% rate.

Fees of up to 45% are now set to be applied to Chinese EVs for the next five years. 

Although the voting record is not publicly available, Euronews reported that Bulgaria, Denmark, Estonia, France, Ireland, Italy, Lithuania, Latvia, the Netherlands and Poland all voted in favour of the tariffs.

Germany, Hungary, Malta, Slovenia and Slovakia voted against, it said, while Austria, Belgium, Croatia, Cyprus, Czechia, Finland, Luxembourg, Portugal, Romania, Spain and Sweden abstained.

Although the move is intended to level the playing field for European car makers, several of the industry's most important brands have rallied against the introduction of tariffs.

“We don’t think that the tariffs can solve the situation,” Skoda sales and marketing chief Martin Jahn told Autocar this week. 

Jahn warned that Chinese manufacturers would set up factories in Europe to circumvent the tariffs. BYD, Chery and Stellantis-backed Leapmotor have already established production hubs in the region.

“[Tariffs] are going to be temporary damage for BYD,” the Chinese firm's special Europe advisor, Alfredo Altavilla, recently told Autocar. “In less than a year from now, we will become officially a European manufacturer."

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Jahn said the EU should instead fund its home-grown car manufacturers to better compete with the Chinese – a sentiment shared by Stellantis, whose chief, Carlos Tavares, is reported to have said European firms should “try to be Chinese ourselves”.

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Charlie Martin

Charlie Martin Autocar
Title: Editorial assistant, Autocar

As part of Autocar’s news desk, Charlie plays a key role in the title’s coverage of new car launches and industry events. He’s also a regular contributor to its social media channels, providing videos for Instagram, Tiktok, Facebook and Twitter.

Charlie joined Autocar in July 2022 after a nine-month stint as an apprentice with sister publication What Car?, during which he acquired his gold-standard NCTJ diploma with the Press Association.

Charlie is the proud owner of a Fiat Panda 100HP, which he swears to be the best car in the world. Until it breaks.

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