Europe begins to roll back tariffs on models produced in China

Europe begins to roll back tariffs on models produced in China

There is already a partial U-turn on theEuropean Union sui duties regarding electric vehicles produced in China. As reported by Automotive News Europethe European Commission has informed Volkswagen and BMW that it is considering the possibility of reduce rates regarding the related battery-powered models made in China.

In particular, the Commission would be willing to classify the two companies as so-called “cooperating companies”, which would make them eligible for a 20.8% tariff on their models produced in China, compared to a 37.6% duty under the current regulation.

The situation of MINI and Cupra

Among the most penalized models of the two brands are the electric MINI and the Cupra Tavascan of the Volkswagen Group, which are currently hit by the highest level of duties ever.

If approved, it would be a first compromise from Brussels, which is hitting not only Chinese producers with duties, but also several European brands.

<p>MINI Cooper SE</p> <p>” width=”16″ height=”9″ loading=”lazy”/> </source></source></picture> </section> <section contenteditable= <p>Cupra Tavascan</p> <p>” width=”16″ height=”9″ loading=”lazy”/> </source></source></picture> </section> </section> <p>It is no coincidence that the German auto industry has opposed the tariffs because it fears retaliation from China, where German brands earned a third of their revenues last year. </p> <p>At the moment, Volkswagen and BMW have not commented on these advances reported by <em>Automotive News Europe</em>but the impression is that it will take a long time to clarify things.</p> <p>In fact, Brussels has until this autumn to take a final decision on the duties, which for now are <strong>provisional</strong> and are based on a series of parameters such as low-interest loans granted to Chinese manufacturers, direct state incentives for brands and aid for battery production.</p> <h2><span class=The appeal of the automotive world

In general, the European automotive industry has been making its voice heard towards the EU in recent weeks.

31 associations have addressed Strasbourg and Brussels to propose an “ambitious and open trade policy to support the competitiveness and economic prosperity” of the European Union, as reported in the letter published on the website of Acea (European Automobile Manufacturers’ Association).

The request is to maintain openness and growth as fundamental components of the EU’s trade policy, avoiding any kind of barriers.

The appeal, therefore, is to take a step back in trade war with China. Furthermore, the associations also call for the appointment of a dedicated Commissioner for Trade to supervise this exclusive EU competence and call on Europe to continue supporting the WTO (World Trade Organization).

Source: it.motor1.com