The European Union has approved additional tariffs on Chinese electric vehicles, which will lead to an increase in the prices of these cars in member states. The measure, backed by ten countries, includes additional duties of up to 35 % and will hit manufacturers such as BYD and Geely the hardest. Slovenia is among the five countries that voted against, but failed to stop the decision.
Who would have thought that one day electric vehicles – the technological pioneers of our green future – would become the center of a geopolitical battlefield? But here we are. The European Union has approved additional tariffs on Chinese electric cars, setting off alarms among electric vehicle enthusiasts and automakers. In one of the toughest economic battles between Brussels and Beijing, the additional tariffs are not only an economic measure, but a response to alleged "unjustified subsidies" by China.
Additional tariffs - Europe's response to Chinese subsidies
After a one-year investigation, the European Commission has concluded that China heavily subsidizes its companies that produce electric vehicles, thereby undermining fair competition in the market. In response, Brussels imposed additional tariffs on Chinese e-vehicles, which have already flooded Europe's roads at affordable prices. Although the temporary tariffs went into effect in the summer, they have now been finalized and will be in place for five years.
The largest Chinese manufacturer of electric vehicles, BYD, will now be subject to an additional charge 17% duty, which raises the total customs duty on the import of their vehicles into the EU to 27 percent. Other manufacturers, such as Geely and SAIC, however, will face tariffs of up to 35 %. All these figures are a significant burden on importers, who will likely pass this burden on to European buyers.
Why did Slovenia vote against?
The decision on additional customs duties was not unanimous. Slovenia, together with Germany, Hungary, Slovakia and Malta, voted against. Why? The reasons for Slovenian opposition are probably closely related to its economic partnership with Germany, where major car manufacturers – BMW, Volkswagen and Mercedes – have expressed serious concerns about the measures. The Chinese market is one of the biggest for German car companies, and they fear that Chinese retaliation, if it happens, would have a negative impact on their sales. Slovenia, which is closely linked to the German automotive industry, could also feel the consequences of these tariffs.
What does this mean for the European e-vehicle market?
Buyers of electric vehicles in the EU will undoubtedly feel the effects of these tariffs. Chinese electric cars, which until now were famous for their affordability, will become much more expensive. For example, Tesla, which produces its cars in Shanghai, has already faced a 30% customs duty, which has raised prices in Slovenia as well. Although the duty on Tesla vehicles has been reduced to 9 %, this does not change the fact that the prices of Chinese vehicles in Europe will now be much higher.
However, it is not just about raising prices. This is a signal of a wider trend where countries are increasingly resorting to protective measures at a time of rising geopolitical tensions. In a world where Europe is striving for autonomy in technology and industry, the additional tariffs represent an attempt to contain competition from powerful Chinese companies.
Looking ahead – is this just the beginning?
Although tariffs are already a fact, the future is uncertain. Chinese Prime Minister Xi Jinping has already threatened retaliatory measures, which could lead to an escalation of the trade conflict between the EU and China. The question is how far this tariff war will go and who will end up getting the short end of the stick. The European Commission emphasizes that they are ready for negotiations with China and the search for alternative solutions, but is this really still possible?
Conclusion
For the average electric car buyer in Europe, this trade dispute mainly means higher prices and fewer choices. While Brussels may see these measures as a necessary safeguard against unfair competition, uncertain times lie ahead for the electric vehicle market.
