2024-10-07
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the european commission officially voted to impose an additional tariff rate of 7.8% to 35.3% on electric vehicles made in china. if the original basic 10% tariff rate is combined, the maximum tax rate will be 45.3%. different additional tax rates will apply to different car brands. it is understood that 5 countries, including germany, hungary, slovakia, and slovenia, are opposed to additional tariffs, while 10 countries, including france, italy, poland, the netherlands, denmark, lithuania, latvia, and estonia, are in favor of additional tariffs.
the eu market has been discussing for some time whether there are subsidies and dumping issues for electric vehicles made in china. as chinese electric vehicle brands continue to gain ground in the european market, there are concerns within the european parliament and the european commission about additional taxes on electric vehicles. the trend of tariffs has gradually become clear, and since may this year, the eu has almost certainly taken action. only the details of how much and how long the tariffs will be levied remain to be confirmed in the final discussion.
germany can be said to be one of the european countries that has the highest investment and trade interests with china, especially in the automobile industry. recently, mercedes-benz, bmw and volkswagen have made it clear that they oppose the eu's additional tariffs on chinese electric vehicles and are worried that this will lead to tariffs and non-germany. tariff barriers in retaliation. five countries, including germany, hungary, slovakia, slovenia, and malta, voted against additional tariffs during a vote within the european commission.
on the other hand, 10 countries including france, italy, poland, the netherlands and denmark voted in favor of additional tariffs. on the one hand, the interests of the automobile industry in these countries are not as entangled in china as in germany. at the same time, to some extent, some countries such as lithuania , latvia, estonia, etc. the outside world interprets the opposition as more based on political considerations.
in addition, as many as 12 countries abstained from voting, including spain, austria, portugal, sweden, finland, sweden, the czech republic, luxembourg, greece, etc. the outside world interpreted that these countries were unable to choose between economic and political considerations and ultimately chose not to express their stance and abstain. even so, the bill for additional tariffs was ultimately passed by the european commission with a vote of 10 to 5.
the eu's additional tariffs will vary depending on the brand. this is determined by the degree of cooperation of each brand during the eu investigation period, as previously reported by ucar. the brand with the highest tax rate is saic motor group, with 35.3%. others such as zhejiang geely holding group are levied at 18%, byd is 17%, and tesla products produced in china are levied at 7.8%. the above additional tax rates will eventually be announced by the eu at the end of october and will last for 5 years. in addition, the additional tax rate will be calculated based on the basic tax rate of 10%. for example, saic motor group, the final tax rate should be 45.3%, while tesla china’s is 17.8%.