The European Union (EU) has passed a regulation that could cause a storm in the global automotive industry, which is already in turmoil with changes. The regulation brought the introduction of additional tariffs on Chinese electric vehicles, which will increase by up to 35 percent. The decision did not come overnight, but followed an extensive investigation against Chinese state subsidies that we have written about in recent months, which showed that the financial support that China provides to its car manufacturers through extensive state subsidies distorts market competition and harms European manufacturers.
Despite the opposition of some EU members and groups that fear the outbreak of a trade war with China, the tariffs have been approved and will come into effect. The Chinese government, as before, assessed the decision as protectionist and unjust.
The additional tariffs, which vary by manufacturer, will also hit vehicles made in China by international companies such as Tesla, which faces a new 7.8 percent tariff. The well-known Chinese car giant Geely faces an increase in tariffs of 18.8 percent, while SAIC, another major player, will be hit with the highest rate of 35.3 percent, EU media reports.
It is planned that the tariffs will last for five years, but it is important to note that the decision and the entire debate did not go in one direction, but met the resistance of Germany, Hungary, Slovakia, Slovenia, Malta, which voted against, while ten member states supported these measures. Twelve countries, including Sweden, abstained. According to the total sum, the decision was adopted, although not the majority of the 27 countries voted “for”, and it is important to note that in the EU, when making decisions, the country’s vote is also valued according to the number of inhabitants of the member states in certain situations. Similar and more drastic measures are threatening to be adopted in the United States of America, which, like Canada, has reacted before.
How the tariffs will affect the operations of domestic European companies and the entire industry, as well as the export of European cars, remains to be carefully monitored.
Energy portal
Source: energetskiportal.rs
