The EU has imposed duties on imports of electric vehicles (EVs) from China starting yesterday after talks between Brussels and Beijing failed to find an amicable solution to their trade dispute.
EVs have become a major flashpoint in a broader trade dispute over the influence of Chinese government subsidies on European markets and Beijing’s burgeoning exports of green technology to the bloc.
“By adopting these proportionate and targeted measures after a rigorous investigation, we’re standing up for fair market practices and for the European industrial base,” European Commission Executive Vice President Valdis Dombrovskis said on Tuesday.
Photo: Reuters
“In parallel, we remain open to a possible alternative solution that would be effective in addressing the problems identified and WTO-compatible,” he added.
The duties would stay in force for five years, unless an amicable solution is found.
According to the commission, which manages trade disputes on behalf of the 27 EU member countries, sales of Chinese-built electric cars jumped from 3.9 percent of the EV market in 2020 to 25 percent by September last year, in part by unfairly undercutting EU industry prices.
The duties on Chinese manufacturers would be 17 percent on cars made by BYD Co (比亞迪), 18.8 percent on those from Geely Holding Group Co (吉利控股集團) and 35.3 percent for vehicles exported by China’s state-owned SAIC Motor Corp (上海汽車). Geely has brands including Polestar and Sweden’s Volvo, while SAIC owns Britain’s MG, one of Europe’s best-selling EV brands.
Other EV manufacturers in China, including Western companies such as Volkswagen AG and BMW AG, would be subject to duties of 20.7 percent. The commission has an “individually calculated” rate for Tesla Inc of 7.8 percent.
The Chinese Ministry of Commerce objected to the measures as protectionist and unfair.
“China does not agree with it and will not accept the ruling,” the ministry’s statement said. “China will continue to take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.”
The EU’s retaliatory duties have run into opposition in Germany, which has Europe’s biggest economy and is home to major automakers.
Hildegard Muller, president of Germany’s auto industry association VDA said the imposition of the tariffs is “a setback for free global trade and so for prosperity, the preservation of jobs and Europe’s growth.”
The move increases the risk of a far-reaching trade conflict, Muller said in a statement.
“The industry is not naive in dealing with China, but the challenges must be resolved in dialogue,” Muller added.
The rapid growth in China’s market share has sparked concern in the EU that Chinese cars would eventually threaten the EU’s ability to produce its own green technology to combat climate change. Business groups and unions also fear that the jobs of 2.5 million auto industry workers could be put in jeopardy, as well as those of 10.3 million more people whose employment depends indirectly on EV production.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
Prices of gasoline and diesel products at domestic gas stations are to fall NT$0.2 and NT$0.1 per liter respectively this week, even though international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices continued rising last week, as the US Energy Information Administration reported a larger-than-expected drop in US commercial crude oil inventories, CPC said in a statement. Based on the company’s floating oil price formula, the cost of crude oil rose 2.38 percent last week from a week earlier, it said. News that US President Donald Trump plans a “secondary