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The EU Imposes 36% Tariff on Chinese Electric Vehicles

August 20, 2024

The European Commission announced that the EU intends to impose tariffs of up to 36% on Chinese electric vehicles for five years while remaining open to any alternative solutions proposed by Beijing. According to the Commission’s statement, these tariffs will be added to the existing 10% tariffs already applied to cars manufactured in China. The new tariffs are expected to take effect by the end of October, pending approval from EU member states, replacing temporary tariffs set at 38% in early July. The Chinese government has filed a complaint with the World Trade Organization over the EU tariffs on electric vehicles made in China. China’s Ministry of Commerce stated that Beijing has resorted to the WTO’s dispute settlement mechanism to “protect the development rights and interests of the electric vehicle industry and support global green transformation.” The EU had imposed temporary tariffs of up to 37.6% on Chinese-made electric vehicles, alleging that the industry unfairly benefits from Beijing’s government subsidies.