The EU countries will impose a 45% tax on Chinese electric cars.

After the step taken by the US government to ban the use of hardware and software produced in China in America, this time the European Council took a similar step. Member countries of the European Union (EU) supported the proposal to impose an additional customs duty of up to 45% on Chinese-made electric cars.

NEW TAX ON CHINESE AUTOMOTIVE BRANDS

The EU Commission announced that the proposal for additional customs duties on electric cars imported from China received sufficient support from member countries. The statement said, "The EU Commission's proposal to impose final countervailing duties on electric car imports from China has received the necessary support from EU countries." It was noted in the statement that this is an important step in completing the commission's anti-subsidy investigation, and it was recorded that the EU and China continue to work on alternative solutions compatible with World Trade Organization (WTO) rules. The statement also mentioned that the implementing regulation containing the definitive findings of the investigation will be published in the Official Journal of the EU by October 30, 2024, at the latest.

GERMANY AND HUNGARY OPPOSE THE PROPOSAL

The commission's proposal can be prevented if a qualified majority of 15 member countries representing 65% of the EU population votes against it. Germany and Hungary oppose the additional tax application, which is supported by France and Italy.

CHINESE COMPANIES ON THE RISE IN EUROPE

In recent years, the share of Chinese manufacturers in electric cars sold in European countries has been rapidly increasing. The sales of low-priced and subsidized electric cars produced in China have outpaced their competitors. The EU Commission announced in July that a temporary additional tax would be applied to electric cars produced in China imported into member countries of the Union. Before the decision, the EU was applying a 10% tax on electric vehicles imported from China.

COLLECTION TO START IN NOVEMBER

With the latest application, it is expected that an additional tax of 7.8% will be imposed on Tesla's models produced in China, 17% on BYD, 18.8% on Geely, 20.7% on manufacturers cooperating in the investigation but not listed, and 35.3% on SAIC and other companies that do not cooperate. The final tax rates are expected to be added to the existing 10%. Taxes reaching up to 45% are expected to start being collected at the beginning of November.