The European Commission today imposed new tariffs on electric vehicles imported from China, ranging between 17.4% and 38.1%, varying depending on the manufacturer and the level of suspected subsidy.

The new tariffs include: BYD: 17.4%, Geely: 20%, SAIC: 38.1%, other Chinese electric vehicle manufacturers who cooperated in the investigation: 21%, other Chinese electric vehicle manufacturers who did not cooperate: 38.1%.

These duties will apply to all Chinese electric vehicle manufacturers selling in Europe, including companies that own joint factories with Western companies such as Volkswagen and General Motors. However, the effects will vary.

For example, Tesla, which has a factory in Germany, will pay an average tariff of 21%, while SAIC, Volkswagen’s partner, will pay a much higher duty of 38.1%.

The European Commission believes that Chinese government support gives Chinese companies an unfair advantage over their European competitors. Which could lead to losses in jobs and companies in Europe. China rejected the accusations and described the European move as “protectionist.”

These new tariffs are expected to lead to higher prices for Chinese electric cars in Europe.

The investigation into China’s support for the electric car industry began in October 2023, and the Commission found evidence of multiple forms of government support, including grants, cheap loans, and tax breaks.

The market share of Chinese electric vehicle brands in the EU has risen rapidly in recent years, from 0.4% in 2019 to 7.9% in 2023.