International News

Battery Electric Vehicle Tariffs

Author : Bozhou Marine

Update time : 2024-06-17 10:37:11

In June, several countries around the world raised import tariffs on battery electric vehicles exported from China.

  European Union

On June 12, local time, the European Commission disclosed the level of temporary tariffs imposed on battery electric vehicles (BEVs) imported from China.
The tariffs imposed by the European Commission on three sampled Chinese automakers are:
BYD 17.4%;
Geely 20%;
SAIC 38.1%;
Other Chinese battery electric vehicle manufacturers participating in the investigation but not yet sampled will be subject to a weighted average tax of 21%.

The European Commission said that if discussions with China cannot produce an effective solution, these temporary tariffs will be introduced from July 4.
The normal tariff rate for passenger cars in the European Union is 10%, which means that the tariff rate faced by companies such as SAIC has increased to 48.1%, while the tariff rates for other companies are between 27.4% and 31%.

According to a survey conducted by the European Union Chamber of Commerce in China, for most Chinese automakers, a tariff of more than 10% imposed by the EU is considered high, which will have a direct negative impact on exports to Europe. The current temporary tariff range of 17.4% to 38.1% means severe market access barriers.

Some analysts believe that the high tariffs imposed by the EU this time will affect China's electric vehicle exports. Recently, an analysis report released by the Kiel Institute for the World Economy in Germany pointed out that if the EU imposes a 20% import tariff on Chinese-made electric vehicles, the number of Chinese-made electric vehicles imported by the EU will be reduced by a quarter, about 125,000 vehicles, and the related trade losses will be as high as nearly US$4 billion.

  Türkiye imposes 40% tariff on Chinese cars

On June 8, the Turkish Ministry of Commerce issued a statement saying that Turkey has decided to impose tariffs on passenger cars imported from China, and the new tariff rules will come into effect on July 7.

According to the regulations published in the official gazette, the 40% tax currently applicable to electric vehicles will apply to vehicles of all fuel types, and the minimum tariff per vehicle is set at US$7,000 (approximately RMB 50,000).

It is reported that as early as 2023, Turkey imposed a 40% tariff on electric vehicles imported from China.

With the introduction of Türkiye's new tariff rules, all cars imported from China, including fuel vehicles, will be subject to an additional 40% tariff.

Since the beginning of this year, sales of Chinese auto companies have begun to grow rapidly in the Türkiye's market. Türkiye's tariff increase is a big challenge for Chinese automakers. The implementation of this policy will directly increase the sales cost of Chinese cars in the Turkish market, reduce price competitiveness, and lead to a slowdown in growth, especially for brands with small sales volumes, which are likely to face losses.

This means that Chinese automakers need to re-evaluate their strategic layout in the Türkiye's market and consider whether it is necessary to establish more service networks locally or find other partners or channels.

  The United States imposes 100% tariffs on Chinese electric vehicles

The Office of the United States Trade Representative (USTR) said on May 22 that the United States will impose tariffs on a range of Chinese imports, including electric vehicles, lithium batteries, photovoltaic cells, key minerals, semiconductors, steel, aluminum and port cranes, and some measures will take effect on August 1. ,
Among them, a 100% tariff is imposed on Chinese electric vehicles.

The White House said the new measures affect $18 billion in goods imported from China, including steel and aluminum, semiconductors, electric vehicles, key minerals, solar cells and cranes. Although the tax rate on electric vehicles is eye-catching, it may have more political significance than practical impact on the United States because the United States imports very few Chinese electric vehicles.

  Brazil gradually increases tariff rates on new energy vehicles

On November 10 last year, the Foreign Trade Commission (Camex) of the Brazilian Ministry of Economy decided that from January 2024, the country will resume levying import tariffs on new energy vehicles, including pure electric new energy vehicles, plug-in new energy vehicles and hybrid new energy vehicles, and gradually increase import tariff rates on new energy vehicles. Data show that by July 2026, the relevant tax rate will rise to 35%.

According to the China Passenger Car Market Information Joint Conference (CPCA), Brazil recently surpassed Belgium to become the largest export market for Chinese electric and hybrid vehicles (BEV+PHEV). Data show that China's electric vehicle exports to Brazil have increased 13 times over the previous year, reaching 40,363 vehicles in April. The large increase can also be seen from the following fact: in January 2024, Brazil was only the tenth largest import market for Chinese electric vehicles.

www.bozhou-int.com | Marine Light

Previous : Work 6 Days A Week

Next : Social Conflict In Argentina