The European Union has enacted protective duties on Chinese electric vehicles, marking a significant escalation in trade tensions. Starting Wednesday, tariffs ranging from 7.8% for Tesla to 35.3% for SAIC will impact major manufacturers including BYD and Geely.
The EU Commission justified these measures citing the Chinese EV market share surge from 3.9% in 2020 to 25% by September 2023, allegedly driven by unfair subsidies. These include preferential land pricing, discounted lithium supplies, and favorable state financing.
While Brussels defends the five-year tariffs as necessary for market fairness, China’s Commerce Ministry has strongly rejected the ruling. Germany’s auto industry warns of potential economic consequences, with VDA head Hildegard Müller expressing concerns about a broader trade conflict.
The measures aim to protect 2.5 million direct and 10.3 million indirect EU auto industry jobs while maintaining European green technology independence. However, the possibility remains open for an alternative WTO-compatible solution through continued dialogue.
