The lowest level will apply to BYD, an automaker based in Shenzhen. Geely, which owns Volvo, Polestar, and Lotus, faces duties of 19.9%. SAIC, a Chine

Why the EU is imposing maximum tariffs of 36.7% on Chinese EVs

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2024-07-04 18:00:06

The lowest level will apply to BYD, an automaker based in Shenzhen. Geely, which owns Volvo, Polestar, and Lotus, faces duties of 19.9%. SAIC, a Chinese state-owned carmaker, will receive the maximum 37.6%.

The charges are an attempt to protect the EU auto industry. Beijing has been accused of creating unfair competition through “illegal subsidisation” of Chinese EV makers.

“The electric vehicle sector holds huge potential for Europe’s future competitiveness and green industrial leadership,” Ursula von der Leyen, the European Commission president, said at the probe’s launch.

“EU car manufacturers and related sectors are already investing and innovating to fully develop this potential. Wherever we find evidence that their efforts are being impeded by market distortions and unfair competition, we will act decisively.”

The EU has now concluded that the subsidies are indeed unfair. With access to this state support, Chinese EV makers stand accused of artificially lowering prices.