Brussels has decided to strike hard against electric vehicles imported from China. The European Commission has announced a series of measures aimed at heavily taxing these vehicles, which it considers unfairly subsidized by Beijing. This initiative marks a significant step in the defense of the European automobile industry, which sees the rise of Chinese vehicles as a threat to its own survival.
Revised and adjusted taxes
On August 20, the European Commission unveiled a revised tariff on electric vehicles imported from China. The tariffs will be in addition to the 10% tax already in place. Surcharges could reach up to 36% for some manufacturers. The measures, which are expected to come into effect by the end of October, will be in place for five years. Changes to the first version of the tariffs include a slight reduction in rates for some manufacturers, such as BYD and Geely, but they are still substantial.
Why Tesla is concerned
Contrary to what one might think, Tesla is not exempt from these taxes. Although the American company has a factory in Germany, it continues to import some of its models, including the Model 3, from China. The Commission considered that, even if Tesla does not benefit from the same subsidies as Chinese manufacturers, it must nevertheless pay a 9% surcharge. On the other hand, the Model Y, produced in Germany, is not affected by these measures.
The Chinese response and the consequences for European industry
China was quick to respond. The Chinese Ministry of Commerce has already taken the tariffs to the World Trade Organization (WTO), calling the EU's practices protectionist and unfair. The China Association of Automobile Manufacturers (CAAM) has also expressed its concerns, citing huge risks for EU-China trade relations.
For Europe, these measures are a risky bet. While they are intended to protect the continent's car industry, they could also trigger trade tensions and have negative effects on the European economy. Chinese brands, which have managed to establish themselves on the European market with competitive prices, could react by raising their prices, which would have an impact on consumers.
A market in full mutation
The imposition of these taxes is part of a context of profound transformation of the European automobile market. With the ban on sales of thermal vehicles planned for 2035, European manufacturers must accelerate their transition to electric. In this context, competition with Chinese manufacturers, who have taken a significant lead in the production of batteries and electric vehicles, is becoming increasingly intense.
Brussels has therefore decided to toughen its stance, but the question remains open: will these measures be enough to allow the European automobile industry to remain competitive in the face of the rise of the Chinese giants? Only time will tell.