The European Union raised customs duty on Chinese electric vehicles in some cases up to 45.3%. The new tariffs apply from Wednesday. Rates vary depending on the company. Additional tariffs will range from 7.8%. For Tesla up to 35.3 percent For SAIC Motor and will be added to 10%. standard import duty on cars into the EU.
Chinese ministry ‘does not accept’ tariffs
In a statement, the Chinese ministry said that “China has repeatedly indicated that the EU’s investigation into Chinese electric vehicles has many unjustified and illegal aspects and is a protectionist practice of unfair competition,” CNBC reported.
CNBC reminds that The EU launched an investigation into Chinese electric vehicles last year. In the opinion of EU officials Chinese electric cars were illegally subsidizedand therefore “cause or threaten to cause economic harm” to the electric vehicle industry throughout the European community.
CNBC also reported that China has already filed a lawsuit under the World Trade Organization’s dispute settlement mechanism. The Ministry of Commerce said that “China will continue to take all necessary measures to resolutely protect the legitimate rights and interests of Chinese companies.”
Negotiations are still ongoing
China’s Ministry of Commerce also emphasized that the EU had announced that will continue negotiations with Chinaadding that both sides are conducting a new round of consultations.
Both sides are considering possible commitments regarding minimum price for Chinese producers or investments in Europe as an alternative to tariffsas reported by Reuters a few days ago.
Ken Peng, head of Asia investment strategy at Citi Wealth, told CNBC that if China moves retaliation, any tariffs are expected to focus on imports of agricultural and luxury products from Europe.
