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Amidst accusations that China is selling electric cars at artificially low prices, it's widely anticipated that the European Union (EU) will impose tariffs on them this week.
China's electric car exports are attracting more attention globally, with accusations that Beijing is heavily subsidizing these exports to help its electric car companies. Chinese brands, with their excess production capacity and expansion into international markets, are accused of selling electric cars at prices lower than they should be.
The growth of China's electric vehicle industry has led to concerns about overcapacity from authorities in the US and Europe. Last month, the US announced 100% tariffs on Chinese electric car imports.
US President Biden declared on May 14, 2024, that the US would enforce Section 301 tariffs on around $18 billion worth of goods, including a 100% tariff on all-electric vehicles from China. Similarly, Turkey reportedly declared on June 8 that it would add a 40% tariff on vehicle imports from China.
Many European car manufacturers are particularly reliant on sales in China and are worried about potential retaliation from Beijing. European car companies also import vehicles made in China. Additionally, several Chinese automakers have already established factories in the EU.
The tariff is expected to be less severe than those in Turkey and the US due to lobbying from local automakers with strong ties to China.
