European duties on Chinese cars: prices of the most affected models

After the investigation launched “on artificially low prices” and the conclusion of the electoral round, the European Union announced the imminent arrival of duties on Chinese cars. By 4 July 2024, the Commission will publish a regulation in the Official Journal explaining in detail what was assessed to decide the amount of duties. Accordingly, at the moment it is about of hypotheses, above all on the size of the duties but also on the total recipients. In fact, there are many aspects to be clarified and the negotiations between the parties involved will come to a head in the next few days. The day after publication, therefore the July 5, 2024, the EU measure should come into force. Net of any changes, the new duties will range from 17.4% to 38.1%. The three Chinese producers included in the sample will be: Byd of 17.4%; Geely 20%; Saic 38.1%. Other producers who cooperated in the investigation will be subject to a 21% duty, while it will be 38.1% for those who did not cooperate. Currently, the percentage imposed on is not yet clear European car manufacturers that produce in China, although unconfirmed rumors indicate 21%. The duties currently in force on Chinese cars are 10%, compared to the 15% applied by Beijing to cars of European origin. The provision concerns 100% electric cars but not hybrid and thermal. So, for example, in the three cases mentioned the taxes would be, overall, of 27.4%, 30% And 48.1%. “The other Chinese electric car producers, who collaborated in the investigation but were not included in the sample, will be subject to the following weighted average duty of 21%”, they specify from Brussels, “In parallel, the European Commission has contacted the Chinese authorities to discuss these findings and possible ways to resolve this issue.” Only Tesla has already announced a price increase for the Model 3 starting from July 1st: most of the Model 3s circulating in Europe are produced in the Shanghai gigafactory. Tesla, in his note, did not add how much the list prices will increase. In the following cards, the hypothesis on the increases that will affect some models on the European market.