European Union countries have voted to impose duties on imports of electric vehicles (EVs) from China, amid ongoing trade negotiations with the Chinese government. The decision stems from concerns over Chinese government subsidies that have allowed Chinese EVs to undercut European prices, significantly increasing their market share from 3.9% in 2020 to 25% by September 2023.
The proposed duties, set to take effect on October 31 unless a resolution is reached, include 17% on BYD vehicles, 18.8% on Geely, and 35.3% on SAIC exports. Other manufacturers, including Western companies like Volkswagen and BMW, would face a duty of 20.7%, while Tesla would have a rate of 7.8%.
Germany and Hungary opposed the duties, expressing concerns over potential trade conflicts and the impact on European automotive jobs. The EU aims to ensure any solution from China aligns with World Trade Organization rules and addresses the issue of subsidization.