The bogeyman of the heavy duties towards Chinese cars, had inflamed discussions in recent weeks. A sort of pursuit of protectionism by the European Union which, in some cases, would have produced an increase of 38% (to be added to 10% of the existing duties) to the price of electric cars coming from the Dragon. The conditional, however, remains a must because if on the one hand it is true that the measure will be active starting from next July – now upon us -, on the other hand it is equally real that Europe is thinking of reevaluating this measure , looking for a softer solution. After all, many manufacturers from the Old Continent have also railed against the idea of tariffs on China.
We are thinking about a reverse
We should not be surprised by the EU’s change of direction which, after having unleashed lightning and thunderbolts, has cleared some clouds in the sky by agreeing to undertake new talks with the interested companies to find a solution to the tariff issue. Chinese electric cars have become the sworn enemy of Europe and, in the first instance, a penalty of 48% was thought of against them. A heavy measure that many did not like.
To get to this point, a precise investigation was held in the Commission in order to understand which Chinese brand could be based on local government subsidies, and then sell in Europe with higher margins. A kind of unfair competition that the EU attempted to balance by applying personalized duties to each brand involved in the investigation, reaching 48%. Today, however, the climate would be a little more relaxed and a step back could be made with respect to the measure that will arrive in July, albeit provisionally.
EU second thoughts on tariffs on Chinese electric cars
According to what was promised by the European Union, the Chinese group would be most affected by the tariffs SAICwhich sells branded vehicles in the Old Continent MG And Maxuswith a share of 48% compared to 10% now. As Professor Peter Wells of Cardiff University confirms, however, these costs would have been passed on to the consumerwhich would have paid more for cars.
Furthermore, this excess of protectionism could trigger a harmful reaction throughout the European automotive sector, as producers from the Old Continent could have raised prices without having to worry about more accessible competition from Asia. Not to mention that this excess of zeal in defending the local market has also caused thunder Chinawho harshly criticized the measure: if the Asian country decided to do the same, raising import taxes on European products, it would be a disaster of global dimensions for all those who have created profitable trade bridges with the Dragon from Europe.
Europeans against Chinese tariffs
For all the reasons listed, many European producers immediately said they were against raising taxes on Chinese brands. At the head of this platoon is Mercedes-Benzwho he has business with Geely, but it wouldn’t be the only one. Now new dialogues announced by the EU are starting which give rise to hope for a more harmonious solution, which is good for everyone. It will be possible? We’ll see.
