EU imposes new tariffs on Chinese cars
The European Union on Wednesday imposed tariffs on Chinese-produced electric vehicles (EVs), adding another pressure point to Chinese EVs on top of existing American duties imposed by President Biden.
The European Commission announced the five-year tariffs following a yearlong investigation that determined Beijing engaged in unfair practices to benefit domestically-produced EVs. In addition to the EU’s existing 10 percent tariffs on imports, the commission will impose the duties according to the subsidy automakers received from Beijing. Tesla will be slapped with the lowest duty, at 7.8 percent, while the rate for Shanghai-based SAIC Motor and all other non-cooperating automakers will be 35.3 percent.
China’s Ministry of Commerce hit back at the decision in a statement Wednesday, saying the nation “firmly opposes the EU’s unfair, non-compliant and unreasonable protectionist practices in this case, and the imposition of countervailing duties on Chinese BEVs.”
The decision further shrinks the market for Chinese-made EVs in the West, coming on top of 100 percent tariffs imposed by the U.S. and Canada. As domestic EV production increases in the U.S., the Biden administration has emphasized the economic opportunity while former President Trump has sought to tap into autoworker anxiety around the potential loss of jobs.
The issue has also figured heavily in the race for the open Senate seat in Michigan, where former Rep. Mike Rogers (R-Mich.) has accused Rep. Elissa Slotkin (D-Mich.) of backing Biden administration mandates requiring automakers to produce a larger share of electric and hybrid vehicles.
Although Slotkin has kept her distance from the administration on the mandate, she has been a vocal backer of the EV tariffs, and was present at the White House in May for the announcement of the increased duties.
“The production of these vehicles and products is subsidized by the Chinese Community Party, positioning them to flood our markets and kill American jobs in our own manufacturing sector,” Slotkin said in May. “Today’s announcement targets China’s long standing unfair trade practices, and begins the process of pushing back on their flooding markets with subsidized goods that undercut good old fashioned American competition.”