The European Union disclosed on Wednesday that there will be additional tariffs of up to 38.1% on electric vehicles imported from China starting next month, aiming to curb China’s dominance in the industry and protect local manufacturers.
The decision follows an investigation into subsidies that began last year, as Chinese EV manufacturers have been aggressively expanding into Europe amid a domestic price war and years of technological advancements.
The European Commission announced that carmakers, including BYD Co., Geely Automobile Holdings Ltd., and SAIC Motor Corp., have been formally notified of the new levies, set to take effect around July 4.
The provisional duties will range from 17.4% to 38.1% for leading Chinese manufacturers. Other Chinese automakers will face tariffs of either 21% or 38.1%, depending on their cooperation with the EU’s investigation.
While EU leaders argue that these tariffs are necessary to protect the region’s manufacturers from unfair competition, several European automakers have criticised the move.
They fear it will drive up prices, deter customers, and provoke costly responses from China.