The EU imposes new tariffs on Chinese cars

The European Union imposed tariffs on Chinese-made electric vehicles (EVs) on Wednesday, adding a new pressure point for Chinese EVs on top of existing US duties imposed by President Biden.

The European Commission announced the five-year tariffs after a year-long investigation that found Beijing was guilty of unfair practices in favor of domestically produced electric vehicles. In addition to the existing 10 percent EU tariffs on imports, the commission will impose the duties based on the subsidy received by car manufacturers from Beijing. Tesla will receive the lowest excise tax rate, at 7.8 percent, while the rate for Shanghai-based SAIC Motor and all other non-cooperating automakers will be 35.3 percent.

China’s Commerce Ministry reversed the decision in a statement on Wednesday, saying the nation “strongly opposes the EU’s unfair, non-compliant and unreasonable protectionist practices in this case, and the imposition of countervailing duties on Chinese BEVs.”

The decision further shrinks the market for Chinese-made electric cars in the West, on top of the 100 percent tariffs imposed by the US and Canada. As domestic production of electric cars increases in the U.S., the Biden administration has emphasized the economic opportunity, while former President Trump has tried to play on autoworkers’ fears about the potential job losses.

The issue has also played a major role in the race for Michigan’s open Senate seatwhere former Rep. Mike Rogers (R-Mich.) Rep. Elissa Slotkin (D-Mich.) has accused of supporting Biden administration mandates requiring automakers to produce a greater share of electric and hybrid vehicles.

Although Slotkin has kept her distance from the administration on the mandate, she has been a vocal supporter of EV tariffs and was at the White House in May for the announcement of the increased allowances.

“The production of these vehicles and products is subsidized by the Chinese Community Party, allowing them to flood our markets and destroy American jobs in our own manufacturing sector,” Slotkin said in May. “Today’s announcement takes aim at China’s long-standing unfair trade practices and begins the process of reducing the flooded markets with subsidized goods that undermine old-fashioned American competition.”

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