{"id":131976,"date":"2024-06-14T05:13:02","date_gmt":"2024-06-14T04:13:02","guid":{"rendered":"http:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/eu-tariffs-chinese-electric-vehicles-reaction.html"},"modified":"2024-06-14T05:13:02","modified_gmt":"2024-06-14T04:13:02","slug":"eu-tariffs-on-china-made-evs-how-automakers-are-reacting","status":"publish","type":"post","link":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/2024\/06\/14\/eu-tariffs-on-china-made-evs-how-automakers-are-reacting\/","title":{"rendered":"EU Tariffs on China-made EVs: How Automakers Are Reacting"},"content":{"rendered":"

Many EU-based automakers are not happy about the
\nannouncement of new tariffs against Chinese EV imports.<\/em><\/p>\n

This week's news that the EU intends to issue import tariffs of
\nup to 38.1% on Chinese battery electric vehicle (BEV) imports has
\nbeen met with a wide spectrum of reaction across the automotive
\nindustry and the world of politics.<\/p>\n

What is perhaps most extraordinary about the development is that
\nit runs counter to the wishes of many European carmakers. The EU
\nmade the announcement through its legal arm, the European
\nCommission, which has been conducting an investigation since
\nOctober into subsidies provided by the Chinese government to
\ndomestic automakers for expanded BEV development. The Commission
\nbelieves these subsidies are unfair and illegal.<\/p>\n

In its statement of intention, the Commission said its
\ninvestigation was ongoing and that it “has provisionally concluded
\nthat the battery electric vehicles (BEV) value chain in China
\nbenefits from unfair subsidization, which is causing a threat of
\neconomic injury to EU BEV producers.”<\/p>\n

The investigation is also looking into the potential impact on
\nimporters, users and consumers of BEVs in the EU. The Commission
\nhas asked for discussions with the Chinese government to see if
\nthese issues can be resolved in a manner which meets with World
\nTrade Organization (WTO) guidelines. If those discussions yield no
\nresults, or do not take place, then what the Commission describes
\nas provisional countervailing duties would be introduced from July
\n4, 2024.<\/p>\n

German manufacturers and the German government \u2014 who one
\nwould think have a lot of sway in lobbying the European Commission
\n\u2014 are united in their opposition to this plan. Why? Because of
\nthe near certainty that reciprocal tariffs will be implemented.
\nChina is a particularly large market for the big-three volume
\npremium German carmakers: Mercedes-Benz, BMW and Audi.<\/p>\n

While those carmakers have spent billions in installing
\nproduction in China, they also import vast quantities of vehicles
\nthat are built in Germany, the United States and elsewhere into
\nChina as well. These imported models tend to be those brands'
\nhigh-price-point super premium models. They also happen to be their
\nmost profitable.<\/p>\n

BMW CEO Oliver Zipse commented that “Protectionism risks
\nstarting a spiral: Tariffs lead to new tariffs, to isolation rather
\nthan cooperation. From the BMW Group's point of view, protectionist
\nmeasures, such as the introduction of import duties, do not
\ncontribute to successfully compete on international markets.”<\/p>\n

His counterpart at the Mercedes-Benz Group Ola Källenius added,
\n“We do not need increasing barriers to trade. We should work on
\ndismantling trade barriers in the spirit of the World Trade
\nOrganization.”<\/p>\n

The Volkswagen (VW) Group also highlighted that this EU
\ndirective is the opposite of what the European market is seeing
\n\u2014 a slowdown in BEV buying now that the low-hanging fruit of
\nbusiness\/fleet buyers and early adopters has been picked. And it
\nwill not only be Chinese OEMs that will potentially be subject to
\nthese tariffs \u2014 Tesla, BMW, Volvo, Polestar and Dacia are all
\nbuilding cars in China that they are importing into Europe as well.
\nDespite being European manufacturers, they will have to pay extra
\nto sell these cars in their home region markets.<\/p>\n

German automakers' opposition, and indeed that of the German
\ngovernment representing them, to the tariffs is understandable, but
\nit is by no means universal. Adolfo Urso, Italy's Minister of
\nEconomic Development, said that he welcomed the EU's announcement,
\nlikely seeing it as an opportunity to defend the country's own
\nindustry while attracting investment from some of the affected
\nautomakers with which it has previously held discussions.<\/p>\n

The dichotomy that exists between the reactions of some
\ngovernments and carmakers over the tariff row can possibly be best
\nsummarized by Carlos Tavares, the CEO of Stellantis. A few weeks
\nago he said that tariffs were “a major trap for countries that go
\ndown that path,” while warning that European carmakers are in a
\n“Darwinian” struggle with their Chinese rivals, something that
\ncould have massive social consequences as jobs are cut in order to
\ncompete.<\/p>\n

Yesterday at Stellantis' Investor Day, Tavares reiterated that
\nhe believes a strong protectionist stance taken by various
\ncountries only hurts competitiveness, noting that the only way to
\nwin is to figure out how to truly compete. The approach to China,
\nhe said, requires going on the offensive with better costs and
\nspeed.<\/p>\n

Tavares added that most Chinese automakers have a 30% cost
\nadvantage, based largely in competitive electric architectures, but
\nhe also said that it is possible for automakers like Stellantis to
\ncatch up. Although protectionism may help the European industry in
\nthe short term, it will not encourage the evolutionary step it
\nneeds to survive in the long term.<\/p>\n


\nGet a free trial of AutoIntelligence Suite<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Many EU-based automakers are not happy about the
\nannouncement of new tariffs against Chinese EV imports.This week's news that the EU intends to issue import tariffs of
\nup to 38.1% on Chinese battery electric vehicle (BEV) imports has
\nbeen met with …<\/p>\n","protected":false},"author":2209,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-container-style":"default","site-container-layout":"default","site-sidebar-layout":"default","disable-article-header":"default","disable-site-header":"default","disable-site-footer":"default","disable-content-area-spacing":"default","footnotes":""},"categories":[3267],"tags":[61,122,127,129,124,128,125,132,131,133,126,130,123,66,94,88,97,56,64,65,60,3344,3351,3357,3360,3335,3340,3362,112,3353,40,75,95,3350,3352,3356,3343,3359,3339,3345,3334,3341,104,3354,33,120,3358,3349,3337,3348,105,101,98,115,30,29,41,86,3342,3361,70,69,68,72,71,26,118,108,87,3355,46,55,48,52,54,51,50,83,3338,62,58,57,3336,109,35,3346,59,63,85,79,82,96,80,27,81,114,44,42,43,45,38,39,110,117,100,111,116,3300,73,89,90,92,91,93,84,78,37,102,34,36,77,67,74,99,113,3347,119,28,121,32,47,49,53,103,31,76],"class_list":["post-131976","post","type-post","status-publish","format-standard","hentry","category-car-or-automobile","tag-airpods","tag-anime","tag-anime-characters","tag-anime-cosplay","tag-anime-edits","tag-anime-merchandise","tag-anime-movies","tag-anime-news","tag-anime-recommendations","tag-anime-reviews","tag-anime-series","tag-anime-streaming","tag-animes","tag-app-store","tag-app-store-samsung","tag-appgallery","tag-appgallery-oneplus","tag-apple","tag-apple-music","tag-apple-tv","tag-apple-watch","tag-auto-financing-guide","tag-automobile-industry-news","tag-automobile-laws-and-regulations","tag-automobile-shows-and-expos","tag-automobile-specifications","tag-automobile-technology","tag-autonomous-vehicles","tag-bbc-sport","tag-best-cars-for-long-drives","tag-best-mobile-games","tag-bixby","tag-bixby-xiaomi","tag-car-accessories","tag-car-comparison","tag-car-customization-ideas","tag-car-insurance-advice","tag-car-interior-design-ideas","tag-car-maintenance-tips","tag-car-resale-value","tag-car-reviews","tag-car-safety-features","tag-champions-league","tag-city-cars","tag-cyberpunk","tag-cyberpunk-2077","tag-driving-tips-and-tricks","tag-eco-friendly-cars","tag-electric-vehicles","tag-family-cars","tag-fantasy-football","tag-fifa","tag-football","tag-formula-1","tag-fortnite","tag-free-fire","tag-free-mobile-games","tag-freebuds-pro","tag-fuel-efficiency-tips","tag-future-of-automobiles","tag-galaxy-a52","tag-galaxy-note-20","tag-galaxy-s21","tag-galaxy-watch-4","tag-galaxy-z-fold-3","tag-game","tag-games","tag-golf","tag-harmonyos","tag-highway-cars","tag-how-to-backup-iphone","tag-how-to-factory-reset-iphone","tag-how-to-reset-iphone","tag-how-to-restore-iphone","tag-how-to-unlock-iphone","tag-how-to-unlock-iphone-5","tag-how-to-unlock-iphone-6","tag-huawei","tag-hybrid-cars","tag-ios","tag-ipad","tag-iphone","tag-latest-car-models","tag-live-soccer","tag-lol","tag-luxury-cars","tag-macbook","tag-macos","tag-mate-40-pro","tag-mi-11-lite","tag-mi-home-security-camera-basic-1080p","tag-mi-home-security-camera-basic-1080p-huawei","tag-mi-smart-band-6","tag-minecraft","tag-miui","tag-mlb-scores","tag-mobile-game-design","tag-mobile-game-development","tag-mobile-game-marketing","tag-mobile-game-monetization","tag-mobile-games","tag-mobile-gaming","tag-nba-scores","tag-nba-standings","tag-nfl","tag-nfl-scores","tag-nhl-scores","tag-off-road-vehicles","tag-one-ui","tag-oneplus","tag-oneplus-9-pro","tag-oneplus-buds-pro","tag-oneplus-nord-ce-5g","tag-oxygenos","tag-p40-pro-plus","tag-poco-x3-pro","tag-pokemon","tag-premier-league","tag-pubg","tag-pubg-mobile","tag-redmi-note-10-pro","tag-samsung","tag-samsung-pay","tag-soccer","tag-sports","tag-sports-cars","tag-steam","tag-steeam","tag-top-10-anime","tag-valorant","tag-when-do-the-iphone-7-come-out","tag-when-does-the-iphone-7-come-out","tag-when-is-the-iphone-7-coming-out","tag-world-cup","tag-xbox-series-x","tag-xiaomi"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/131976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/users\/2209"}],"replies":[{"embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/comments?post=131976"}],"version-history":[{"count":1,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/131976\/revisions"}],"predecessor-version":[{"id":132341,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/131976\/revisions\/132341"}],"wp:attachment":[{"href":"htt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