China’s Response to EU Duties: Taxes on Large-Capacity Cars
Further duties in response to Brussels's tariffs on Beijing's electric cars could hit the dairy and cheese sector
China is considering a response to duties imposed by the European Union on imports of electric cars from Beijing.
The investigation into European subsidies for milk and dairy products was launched on August 21. On the same day, the China Association of Automobile Manufacturers (CAAM) warned that the European Commission’s move could “have a serious impact on the EU auto industry, employment, and environmental and sustainable development efforts,” Xinhua news agency reported.
The association is asked to maintain the dialogue, emphasizing that the Chinese and European automotive industries “are highly complementary, as BMW, Volkswagen, and other EU companies have repeatedly demonstrated by expanding their activities in the automotive sector of new energy vehicles (NEVs) in China.” At the same time, companies such as CATL, NIO, and BYD have built plants in European countries, such as Germany and Hungary.
In any case, as we await the actual tariff vote on Chinese electric cars in October in the 27 countries of the EU, the Commerce Department’s is discussing a possible increase in tariff rates on large cars from the European Union. The forecast will be an increase in duties from 15%, as it is today, to 25%. A measure that will affect cars with engines larger than 2.5 liters and therefore mainly targets German premium manufacturers (BMW, Mercedes, Volkswagen), which also, together with the Berlin government, are the most critical of the European Commission’s decision.