EU announces it will impose tariffs on imports of electric vehicles from China

BRUSSELS (AP) — The European Union will impose tariffs on imports of electric vehicles from China starting Thursday after talks between Brussels and Beijing failed to find a peaceful solution to their trade dispute.

Electric vehicles have become a major flashpoint in a wider trade dispute over the impact of Chinese government subsidies on European markets and Beijing’s growing clean technology exports to the bloc.

“By taking these proportionate and targeted measures, following a thorough investigation, we are protecting fair market practices and the European industrial base,” Valdis Dombrovskis, executive vice-president of the European Commission, said on Tuesday.

“In parallel, we remain open to a possible alternative solution that would be effective in addressing the identified issues and is compatible with the (World Trade Organization),” he added. The tariffs will remain in effect for five years unless a peaceful solution is found.

Sales of electric vehicles made in China rose from 3.9% of the electric vehicle market in 2020 to 25% in September 2023, according to the commission, which handles trade disputes on behalf of the 27 EU member states. This is happening in part by unfairly undermining EU industry. prices.

The tariffs for Chinese manufacturers will be 17% for cars produced by BYD, 18.8% for Geely cars and 35.3% for cars exported by the Chinese state-owned company SAIC. Geely owns brands such as Polestar and Sweden’s Volvo, while SAIC owns Britain’s MG, one of Europe’s best-selling electric car brands.

Other electric vehicle makers in China, including Western companies such as Volkswagen and BMW, will be subject to tariffs of 20.7%. The commission has a “custom calculated” rate for Tesla of 7.8%.

———

Associated Press writer Geir Moulson in Berlin contributed to this report.

___

This story was translated from English by an AP editor using a generative artificial intelligence tool.