The European Union has proposed a reduction in tariffs on electric vehicles from Tesla and some Chinese automakers after considering feedback from the automotive industry, according to a Reuters report on Tuesday. This proposal comes in response to concerns raised by manufacturers, aiming to create a more balanced competitive environment in the European automotive market.
Citing an anonymous source familiar with the matter, Reuters reported that the tariff on Tesla’s electric vehicles could drop from 9% to 7.8%, while the tariff on vehicles from the Chinese brand Geely would decrease from 19.3% to 18.8%. However, these percentages are in addition to the EU’s standard 10% import duty on all cars entering the European market.
Not all Chinese automakers will benefit from these reductions. BYD, one of China’s largest electric vehicle manufacturers, will see no change in its proposed tariffs, which will remain at 17%. Meanwhile, companies that did not participate in the consultation process, such as SAIC, which sells the MG brand in Europe, will face a maximum tariff rate of 35.3% on their vehicles.
The European Union first announced these tariff proposals last month, granting China and affected automakers a 10-day window to submit comments. The European Commission reportedly took these comments into account before designing the revised and lower tariffs. However, the new tariffs still require approval from the EU’s 27 member states. A qualified majority—15 member states representing 65% of the EU population—could block the proposal if they vote against it.
Despite these new measures, the implementation of the EU tariff rules may come too late to slow the influx of Chinese electric vehicles into the European market. For example, BYD has already begun selling its compact Dolphin hatchback for under $30,000 in several European markets. Additionally, the BYD Seagull model could be released with a price tag of less than $20,000, posing a significant challenge to local manufacturers and competitors.
Internationally, some countries are taking stricter measures against Chinese-made electric vehicles. Last month, the Canadian government announced a 100% tariff on electric vehicles imported from China, a move in line with the Biden administration’s policies in the United States earlier this year. Former President and current presidential candidate Donald Trump has promised to take these restrictions further by imposing a 100% tariff on all vehicles from China, electric or not.
For those looking to purchase an electric vehicle, it’s important to stay informed on how these tariffs might affect the market. If you’re interested in buying a car, whether electric or conventional, consider exploring specialized platforms like Yacarros.com, where you can find a wide range of options.
