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Brussels, Belgium — The EU on Tuesday decided to impose hefty tariffs on Chinese-made electric cars after an anti-subsidy probe concluded Beijing’s support undercut European automakers.
The extra taxes have been controversial, with strong opposition from Germany and Hungary amid fears of provoking China’s ire and setting off a bitter trade war.
Beijing previously slammed the European Union’s “unfair” and “unreasonable protectionist practices” during the probe.
“By adopting these proportionate and targeted measures after a rigorous investigation, we’re standing up for fair market practices and for the European industrial base,” EU trade chief Valdis Dombrovskis said in a statement.
“We welcome competition, including in the electric vehicle sector, but it must be underpinned by fairness and a level playing field,” he said.
But Germany’s main auto industry association warned the tariffs heighten the risk of “a far-reaching trade conflict”, while a Chinese trade group slammed the “politically motivated” decision even as it urged dialogue between the two sides.
The duties will come on top of the current 10 percent on imports of electric vehicles from China.
The decision became law following its publication in the EU’s official journal later on Tuesday and the duties will enter into force from Wednesday.
Brussels’ probe found that China’s state subsidies were unfairly undercutting European automakers.
Once they come into effect, the tariffs will be definitive and last for five years.
