International News

Up To 45% Tariff

Author : Bozhou Marine

Update time : 2024-10-09 13:30:32

On October 4, local time, EU member states officially voted to impose an additional tax of up to 35% on Chinese-made electric vehicles on the basis of the existing 10% tax, which is scheduled to take effect at the end of October.

In terms of specific tax rates, Tesla will be charged 7.8%, BYD 17%, Geely 18.8%, SAIC 35.3%, and other electric vehicle manufacturers participating in the survey but not individually sampled will be charged 20.7%.
After adding Europe's current 10% basic tariff, SAIC will be charged 45.3%, Geely 28.8%, BYD 27%, and Tesla 17.8%. This means that Chinese electric vehicle manufacturers will face ultra-high tariffs of up to 45% when entering the European market.

The European Commission issued a statement on the 4th saying that the proposal to impose final tariffs on electric vehicles made in China has received the "necessary support" from EU member states.
According to EU diplomats, 10 countries supported the imposition of tariffs, but 5 countries, including Germany and Hungary, voted against it, and 12 countries abstained.

According to data provided by the European side, the voting results on the bill are as follows:
Voting in favor:
10 countries in Europe voted in favor, and the population of these countries accounts for 45.99% of the total population of the EU.
France is one of the countries that actively promotes the bill, and has previously promoted the EU to conduct an "anti-dumping investigation" on Chinese electric vehicles.
Other countries in favor include Denmark, Ireland, France, Greece, Italy and Poland.
Voting against:
Five countries, including Germany, Hungary, Malta, Slovenia and Slovakia, voted against it.
The total population of these five countries accounts for only 22.65% of the EU, which does not meet the mini threshold for overturning the bill.
Abstention:
Spain, Belgium, the Czech Republic, Luxembourg and other 12 countries abstained from voting.
Spanish Prime Minister Sanchez has expressed opposition to tariffs and sent positive signals during his visit to China and after returning home.
The Spanish Minister of Economy also wrote to the Executive Vice President of the European Commission the day before the vote, suggesting that the EU continue to negotiate with China to avoid imposing tariffs.
The abstention reflects the tangled mentality of some European countries, who want to cooperate with the EU's decision, but are also worried that China's countermeasures will hurt themselves.

The bill has caused different reactions within Europe, with clear opinions in favor and against, and some countries have chosen to abstain. The outside world believes that despite the EU's decision to impose tariffs on China, the differences between member states are still obvious. After the voting results came out, the EU also stated that even if tariff measures were taken, China and the EU could still find other solutions.
After the tariffs were implemented, the EU also responded positively to the possibility of consultations. The statement on October 4 stated that the EU will continue to work hard to explore alternative solutions with China, which must be fully in line with WTO regulations, fully address the damaging subsidies identified by the Commission's investigation, and be monitorable and enforceable.

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