On May 11th, it was reported by Chinese media that the US is planning to impose tariffs on Chinese electric cars.
The report mentions that the US is expected to levy new targeted tariffs on key sectors such as Chinese electric vehicles, batteries, and solar equipment.
Experts have criticized this move, stating that the US is simply adding insult to injury. The German Federal Minister of Transport has strongly opposed punitive tariffs on China, with the CEO of BMW also joining the opposition.
Previously, there were reports suggesting that the EU might need to impose tariffs as high as 55% on Chinese electric cars to effectively curb their import.
Initial predictions indicated that the EU might impose tariffs ranging from 15% to 30% on Chinese electric cars. However, this report points out that such rates may not be sufficient to counter the competitive advantage posed by Chinese imports.
The report highlights that even if tariffs reach the expected maximum, some Chinese car manufacturers could still profit significantly from exporting cars to Europe due to their substantial cost advantages.
Researchers also suggest that imports of electric cars from non-Chinese companies could be affected by EU subsidy investigations. Tariffs ranging from 15% to 30% could impact the business of foreign companies like BMW or Tesla that transport cars from China to Europe for sale.
The EU has other means to protect its electric car industry, such as restricting Chinese imports for national security reasons or increasing consumer subsidies for electric cars manufactured within the EU.
