The additional taxes have been controversial, with Germany and Hungary strongly opposed, fearing angering China and sparking a bitter trade war.
Beijing has previously slammed the EU’s “unfair” and “unreasonable protectionist practices” during the investigation.
EU trade chief Valdis Dombrovskis said in a statement: “By taking these proportionate and targeted measures after a rigorous investigation, we are safeguarding fair market practices and European industrial base.
“We welcome competition, including in the field of electric vehicles, but competition must be based on a fair and level playing field,” he said.
But Germany’s main auto industry association warned that the tariffs would increase the risk of “far-reaching trade conflicts”, while a Chinese trade group slammed the “politically motivated” decision despite urging dialogue between the two sides.
Tariffs on electric vehicles imported from China will be higher than the current 10% tariff.
The decision became law after being published in the EU’s Official Journal late Tuesday, with the tariffs set to take effect on Wednesday.
A Brussels investigation has found that Chinese state subsidies unfairly undercut European carmakers.
Once effective, tariffs will be firm and last for five years.
The additional tariffs also apply at different rates to cars made in China by foreign groups such as Tesla, which faces a 7.8% tariff.
Chinese auto giant Geely – one of the country’s largest sellers of electric vehicles – faces an additional tariff of 18.8%, while SAIC Motor will face the highest tariff of 35.3%.
Ailing company
The tariffs are not supported by a majority of the EU’s 27 member states, but opposition was not strong enough to stop them in a vote earlier this month – which would have required at least 15 countries representing 65% of the EU’s population.
The EU launched the investigation to protect its automotive industry, which provides employment to some 14 million people.
France, which pushed for the investigation, welcomed the decision.
French financier Antoine Armand said in a statement: “At a time when our automotive industry needs our support more than ever, the EU is taking a key decision to protect and defend our trade interests. .
But Europe’s largest carmakers, including German auto giant Volkswagen, criticized the EU’s approach and urged Brussels to resolve the issue through negotiations.
Hildegard Mueller, president of the German Automobile Industry Association, said on Tuesday after the announcement that additional tariffs “are a setback for global free trade and therefore for Europe’s prosperity, job protection and growth.” It’s a step backwards.”
Volkswagen, which has been hit hard by intensifying competition from China, has previously said that tariffs will not improve the competitiveness of the European auto industry.
The warning comes weeks after the embattled giant announced plans on Monday to close at least three factories in Germany and cut tens of thousands of jobs.
retaliatory action
Negotiations continue between the EU and China to lift tariffs if a satisfactory deal is reached, but officials on both sides have pointed to differences.
Discussions focus on a minimum price that would replace tariffs and force Chinese automakers to sell vehicles at a cost to offset subsidies.
“We are open to possible alternative solutions that would effectively address the identified problems and be compatible with the WTO,” Dombrovskis said of the World Trade Organization.
The EU-China Chamber of Commerce urged Brussels and Beijing to “accelerate negotiations to establish minimum prices and ultimately remove these tariffs”.
Yet the EU faces retaliation from China. China has stated on October 8 that it will impose temporary tariffs on brandy imported from the EU.
Beijing has also launched an investigation into EU subsidies for some dairy and pork products imported into China.
Trade tensions between China and the EU extend beyond electric cars, with Brussels also investigating Chinese subsidies for solar panels and wind turbines.
The EU is not the only country to impose high tariffs on Chinese electric vehicles.
In recent months, Canada and the United States have imposed higher 100% tariffs on Chinese electric vehicle imports.
Get an in-depth look at upcoming cars in India, electric vehicles, upcoming bikes in India and cutting-edge technologies that are changing the automotive landscape.
First published date: October 30, 2024 06:45 US Standard Time