The EU is expected to announce tariff plans for Chinese electric vehicles this week | Wilnesh News

As the EU cracks down on low-price subsidized imported products, the EU is expected to announce its tariff rate plan for Chinese electric vehicles this week.

The EU has a standard Impose 10% tariff on imported electric vehiclesbut will temporarily increase the price of electric vehicles in China from July 4.

Citi analysts said on Monday that tariffs could rise “from the current 10% to about 25-30%, while our risk scenario (40% chance) sees tariffs rising to 30-50%.”

Anthony Sassine, senior investment strategist at KraneShares, said on Tuesday that he expected tariff rates to be “in the range of 10% to 20%” but “could reach the higher end of 20%” after last week’s European Parliament elections.

European Commission President Ursula von der Leyen saw her party, the European People’s Party, gain seats on Sunday. Von der Leyen has Promote Beijing to adopt “risk-reduction” measures.

The European Commission first launched an investigation Provide subsidies to Chinese electric vehicle manufacturers in October. The EU claims that such import subsidies “pose an economic threat to the EU electric vehicle industry”.

“But Chinese manufacturers are very efficient and in a leading position, so tariffs like this – I don’t think it will have much impact on pricing here. They are still more competitive than their EU counterparts,” Sassin told CNBC. Asia” Tuesday.

China’s electric vehicle industry is booming thanks to incentives and support from the Chinese government, sparking concerns from U.S. and European authorities about overcapacity.

After President Biden raised similar concerns, U.S. Energy Secretary Jennifer Granholm warned in March this year that Chinese electric vehicle products may flood the U.S. electric vehicle market. The United States had already announced tough new tariffs in May. The Biden administration will increase import tariffs on Chinese electric vehicles from 25% to 100%.

turkey It is said On June 8, it was announced that an additional 40% tariff would be imposed on imported cars originating in China.

Last month, Chinese electric vehicle makers including Xpeng Motors and BYD Despite the ongoing EU investigation, Nio has opened a new showroom in Amsterdam to showcase their models in Europe.

BYD announced in December last year that it would Building new factory in Hungary And Chery in April Establish a joint venture Cooperate with Spanish Ebro-EV Motors to develop new electric vehicles.

“Many Chinese manufacturers are now looking to the EU,” said Cedomir Nestorovic, professor of geopolitics at ESSEC Business School.

Nestorovich told CNBC’s “Street Signs Asia” on Monday that they “will avoid or try to avoid all kinds of tariffs.”

“We’re seeing Chinese automakers actually setting up factories in Europe. NIO is also paying attention to Hungary. So there are options, and I’m sure there’s a behind-the-scenes channel,” said KraneShares’ Sassine.

“I don’t think it’s going to be a big problem for Europe. In the United States, it’s different,” Sassin said.