Industry experts criticize EU’s planned tariffs on imported Chinese EVs

The European Union’s planned tariffs on electric vehicles imported from China have drawn criticism from industry experts, who warned that the protectionist measures could exacerbate trade tensions between the two sides and send a negative signal to global cooperation and green development.

The European Commission on Tuesday released its draft decision to impose definitive countervailing duties on imports of electric vehicles from China, ranging from 17% to 36.3%, which is subject to approval by EU member states later this month.

The move comes after the Commission imposed provisional additional tariffs on Chinese electric vehicle manufacturers in July, following its anti-subsidy investigation into Chinese electric vehicles launched in October 2023.

The China Chamber of Commerce for the EU (CCCEU) has strongly criticized the EU’s protectionist stance, expressing “deep dissatisfaction.”

The Brussels-based business group argued that there is insufficient evidence to prove that Chinese electric vehicles cause substantial material harm to the EU market, noting that the “threat of harm” claim used by the EU to justify the imposition of these trade measures is “contrary to the principles of fair trade and unacceptable to the sector”.

The tariffs are “not based on proven facts” but on claims to justify them, said Ferdinand Dudenhoeffer, director of the Center for Automotive Research in Bochum, Germany.

“The European Commission’s unfair use of trade tools to impede free trade in electric vehicles, coupled with this protectionist approach, will ultimately weaken the resilience of the European electric vehicle sector, disrupt the level playing field and undermine the EU’s own green transition,” the CCCEU said in a statement.

“Furthermore, this will exacerbate trade tensions between China and the EU, sending a profoundly negative signal to global cooperation and green development,” he added.

Echoing these concerns, Hrvoje Prpic, president of the Croatian Electric Vehicle Drivers Association, said EU tariffs on Chinese electric vehicles are “not helpful” and “not beneficial” for European manufacturers who are struggling to keep pace with the rapidly developing electric vehicle sector.

Prpic noted that it is European consumers who will bear the costs, as tariffs will make Chinese EVs much more expensive.

“The end users are the ones who will have to pay for this,” he said, adding that this is ‘definitely not good’ for the entire European market.

The CCCEU urged the EU to promote free trade, respect globalization and support the global green transition by canceling countervailing duties on EVs made in China.

“This move would encourage mutual benefit, strengthen the collaborative development of the automotive industry chain between China and Europe, and boost green trade. It would also make a significant contribution to global efforts to combat climate change,” the CCCEU said.

China’s Commerce Ministry also condemned the EU tariffs on Tuesday, saying the country would take all necessary measures to protect the legitimate rights and interests of Chinese companies.

The ministry stressed that more than 10 rounds of technical consultations have been held since the end of June, urging the EU to take practical steps to prevent the escalation of trade disputes.

Earlier this month, China filed an appeal with the World Trade Organization, challenging the EU’s imposition of provisional additional tariffs on Chinese electric vehicles.

Source: Xinhua