Investigation looked at concerns China was subsidising its electric car industry, but some observers believe tariffs could escalate into trade war
BYD electric cars waiting to be loaded onto a ship at the international container terminal of Taicang Port in Suzhou, in China 's eastern Jiangsu province. BYD would face a tariff of 17.4 per cent under the EU move. Photograph: Getty
The decision to hike tariffs on EV imports from China follows an investigation started last October, into concerns China was subsidising its electric car industry, who were then flooding the EU market at costs that undercut European car makers. The trade measures are expected to lead to possible retaliation from China, which some observers have said could escalate into a trade war with the EU.
The commission identified a range of examples of what it felt amounted to clear state assistance of the sector. This included the provision of materials at below market prices, tax exemptions, bank loans with preferential rates for EV producers, as well as grants at local and provincial levels. The anti-subsidy measures targeting China had been championed by France, with other member states, such as Germany, opposed to the escalation, over concerns about China retaliating with countermeasures that could hurt EU exporters. The new tariffs would be on top of existing levies of 10 per cent on electric vehicles imported into the EU.
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