The European Union (EU) has introduced additional customs duties of up to 35.3% on electric vehicles made in China.

The EU Commission announced that the anti-subsidy investigation targeting electric vehicles produced in China has been completed, leading to the implementation of definitive countervailing duties on the import of electric vehicles from this country to the EU for a period of 5 years. Emphasizing the unfair subsidization in the value chain of electric vehicles in China as determined by the investigation, the statement highlighted the economic damage this caused to producers in the EU. It was further mentioned that the additional taxes would come into effect one day after being published in the Official Journal of the European Union, while efforts to find a solution in accordance with World Trade Organization (WTO) rules would continue during this period. The announcement specified that a 7.8% additional tax was imposed on Tesla’s models produced in China, 17% on BYD, 18.8% on Geely, 20.7% on collaborating manufacturers in the investigation, and 35.3% on SAIC and non-collaborating companies, with temporary taxes applied since July 4 not being collected.

ELECTRIC VEHICLES PRODUCED IN CHINA WERE OUTPERFORMING THEIR COMPETITORS Recently, the market share of Chinese manufacturers in electric vehicles sold in European countries has been rapidly increasing. The sales of low-priced and subsidized electric vehicles produced in China were surpassing those of competitors. In July, the EU Commission announced the implementation of temporary additional taxes on electric vehicles produced in China imported into member countries. Prior to this decision, a 10% tax was applied to electric vehicles imported from China. The newly established tax rates will be added on top of the existing 10%. It is expected that the total taxes, reaching up to 45.3%, will be published in the Official Journal of the European Union on October 30 and enforced from October 31 onwards.