EU Slaps Up to 37.6% Provisional Tariffs on Chinese Electric Cars: Will Auto Prices Surge?

By Sunita Somvanshi By Sunita Somvanshi

The EU Commission imposes temporary duties of up to 37.6% on Chinese imports of electric vehicles, sparking a dispute over trade and competition.

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The EU will start requiring security deposits for these levies on July 5th. A decision that might change the car industry is still waiting.

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Individual tariff effects might raise expenses for major manufacturers like BYD, Geely, and SAIC, which could then trickle down to consumers.

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In order to maintain its competitive pricing approach in the European market, BYD will have to overcome a 17.4% tariff hurdle.

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With retaliatory actions imminent, Germany, the third-largest exporter in the world, is facing serious risks.

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Oliver Zipse, the CEO of BMW, criticises the tariff barrier and issues a warning about the restricted supply of electric vehicles and the stalled decarbonisation efforts.

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The Kiel Institute predicts a possible 42% drop in Chinese auto imports amid tariff tensions, changing the dynamics of the industry.

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European automakers may be able to relax, since decreased competition may increase domestic output and sales.

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Europe is projected to experience short-term pricing changes, with the cost of electric cars potentially rising by up to 0.9%, causing consumer and business caution.

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