The European Commission announced additional duties of up to 38.1% on Chinese electric vehicles (EVs) starting in July. This move, labeled as protectionist by China, aims to counteract excessive subsidies and support European automakers facing competition from cheaper Chinese EVs. The new tariffs will impact companies like BYD, Geely, and SAIC, increasing costs amid declining domestic demand. Shares of European carmakers with significant sales in China, such as BMW, fell on fears of Chinese retaliation.
China’s foreign ministry condemned the tariffs, warning of potential retaliation. However, the Chinese Passenger Car Association downplayed the impact, indicating that major firms like Tesla, Geely, and BYD still see growth potential in Europe. The EU’s provisional duties are set to apply by July 4, with the anti-subsidy investigation continuing until November, when definitive duties could be implemented for up to five years.