The EU is preparing to bring additional taxes to China’s electric cars – Automobile Magazine

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The EU Commission is planning to announce the measures to be taken within the scope of the investigation initiated by China regarding government subsidies for electric cars and the temporary additional customs duty decision to be applied to imported products on Wednesday. In recent years, the share of Chinese manufacturers in electric cars sold in European countries is rising rapidly. The sales of low -priced and subsidized electric cars produced in China rapidly leave other competitors behind. The share of Chinese brands in electric vehicles sold in the EU was below 1 percent in 2019, while recently reached 8 percent. This rate will continue to rise rapidly in case of measures. China’s electric car prices in similar segments are 20 percent below the models produced in Europe. In China, brands such as BYD, SAIC, Geely and Tesla and different European companies are produced. EU Commission President Ursula von Der Leyen, in September last year in his “Union’s Situation” speech, announced that electric cars imported from China will be investigated. Von der leyen pointed out that electric vehicles are a sector with great potential for Europe. evaluated. The EU Commission published an official notification that an investigation was initiated on electric cars imported from China to member states from China. Support and subsidies are examined in the investigation EU, regardless of which country is the brand of China produced and sent to the EU to provide support and subsidies provided to electric cars. As a result of the investigation expected to determine that electric cars of Chinese origin are subsidized and that this situation has damaged the EU industry, additional customs tariffs will be applied to electric cars that receive subsidies from China and sent to EU countries. This week, the EU Commission will apply to China that it will apply temporary customs duty to electric vehicle imports this week, thus expecting a commercial friction between Beijing and EU. China is expected to apply similar taxes for some European products as retaliation. In order to make a decision to make temporary tariffs permanent, the approval of the member states is required. 25 percent additional tax is expected, the EU is currently applying 10 percent customs duty to China’s electric cars. Within the framework of the measure, it is envisaged to put additional taxes between 10 and 25 percent. China has long been subsidizing the automotive sector for a long time, it has realized very efficient production, its exports, helping Western countries to achieve their green goals. The United States put 100 percent tax in this area, the US had taken additional tax decisions. The US administration had increased its tariff rate in electric cars imported from China last month to 100 percent by increasing it to 100 percent. In Turkey, in order to promote the share of domestic production in the domestic market and to encourage investments into the country, it decided to apply additional customs duty to 40 percent of the import value of gasoline and hybrid passenger cars. Türkiye, previously, the EU and the United States recently implemented electric cars have gone to the application of additional taxes and imported electric cars imported from China had initiated an additional tax.