Link Copiedcheck_circle
International

China Eyes Retaliatory Tariffs on European Cars Amid EV Trade War

Thoriq Azmi

Share via

Reuters.png

(Image: Reuters)


Chinese automakers have called on Beijing to increase tariffs on imported European combustion (ICE)-powered cars in response to the European Union's recent restrictions on Chinese-made electric vehicles (EVs). 

This was revealed in a report by the state-backed Global Times following a confidential meeting on June 18 organized by China's Ministry of Commerce in Beijing.

Major Chinese automakers like SAIC and BYD, alongside European automakers including Volkswagen, BMW, and Mercedes-Benz, attended the meeting. The focus was on pressuring Europe to reconsider the tariffs aimed at shielding its car industry from Chinese competition.

China and Europe have a reason to work towards a solution so that Chinese EV manufacturers won't have to incur huge extra expenses. 


Caricarz-Web-MG4-MGZSEV-Launch-Malaysia-13.JPGCaricarz-Web-GWM-Ora07-MYLaunch-2.jpg


The European Commission announced that anti-subsidy tariffs of up to 38.1% would be imposed on imported Chinese electric vehicles (EVs) starting in July.  In response, the Commission stated that it was open to exploring amicable alternatives. This action escalates the trade spat between Beijing and the West, much like the U.S. tariff hike in May.

It is unreasonable, according to critics like Zhang Yansheng of the China Centre for International Economic Exchanges, to single out China based on its demand for new energy vehicles and capacity utilisation. He cited China's initiatives to alleviate overcapacity and forecast higher capacity utilisation in the next years.

China had earlier suggested potential retaliation. Among the recommendations were to increase import taxes from 15% to 25% on ICE-powered vehicles imported from the EU with engines bigger than 2.5 litres and to look into European dairy and pork imports for potential anti-dumping violations.


web_CariCarz_2024-Porsche-Cayenne-CKD-Launch_-2.jpgweb_press_Mercedes-AMG-S53-E-Performance-Launch_-3.jpg


In 2023, Europe exported 196,000 large-engine passenger vehicles to China, an 11% increase from the previous year. 

However, exports dropped by 12% in the first four months of 2024. German automakers are particularly dependent on the Chinese market, accounting for 30% of their sales. Popular imported models include Mercedes-Benz's GLE SUV and S-Class sedans, and Porsche's Cayenne. 

Other major exporters of large-engine cars include the U.S., the U.K., and Japan, who could benefit from increased tariffs on European imports. KR

Sources: Automotive News Europe, CarNewsChina





Tagged:

European Union (EU)
European Commission (EC)
tariffs
China
EU China EV tariffs
Share This Article

Written By

Thoriq Azmi

Former DJ turned driver, rider and story-teller. I drive, I ride, and I string words together about it all. [#FuelledByThoriq] IG: https://www.instagram.com/fuelledbythoriq/

Share via

Related News

International
EU Plans to Ban Carbon Fibre in Cars by 2029 – Report

EU Plans to Ban Carbon Fibre in Cars by 2029 – Report

The European Union is planning to ban carbon fibre from cars by 2029, classifying it as a hazardous material.

15-04-2025
International
EU Not Close To Deal With China On EV Tariffs - Report

EU Not Close To Deal With China On EV Tariffs - Report

EU and Chinese officials are exploring alternatives to proposed European tariffs on Chinese EVs.

27-11-2024
International
Strong Growth In Electric Car Sales In Europe By 2025 - Study

Strong Growth In Electric Car Sales In Europe By 2025 - Study

BEVs sold in the European Union are expected to rebound, says group Transport & Environment (T&E).

19-09-2024
International
EU Plans Sept 25 Vote On Raising Tariffs On EVs From China - Report

EU Plans Sept 25 Vote On Raising Tariffs On EVs From China - Report

The EU plans to hold a vote on September 25 to impose definitive tariffs on EVs from China.

18-09-2024
International
EU Will Lower Proposed Tariffs On Tesla, Other EVs from China - Report

EU Will Lower Proposed Tariffs On Tesla, Other EVs from China - Report

European Union is anticipated to slightly reduce the additional tariff rates proposed for Chinese Evs as well as Tesla, an exclusive report says.

11-09-2024
International
EU Cuts Import Tariffs On Selected China-Made EVs

EU Cuts Import Tariffs On Selected China-Made EVs

Tesla, BMW, VW and select Chinese marques benefit from revised import tariffs levied by the EU.

21-08-2024
International
New EU Tyre Ruling Promises Tyres That Are Safer & Last Longer

New EU Tyre Ruling Promises Tyres That Are Safer & Last Longer

A new law introduced by the EU mandates that tyres must offer the same wet weather performance even when worn.

24-07-2024
EV
EU Imposes Up to 48% Tariffs on Chinese EVs

EU Imposes Up to 48% Tariffs on Chinese EVs

European Union reportedly elects to proceed with planned tariffs on imported Chinese EVs, some as high as 48%.

05-07-2024

Latest News

International
2026 MG U9 4x4 Pick-Up Truck Bows In Australia

2026 MG U9 4x4 Pick-Up Truck Bows In Australia

New 2026 MG U9 4x4 pick-up truck bows in Australia, puts Ranger into its crosshairs.

24-09-2025
International
Refreshed GWM Tank 400 Revealed In China

Refreshed GWM Tank 400 Revealed In China

First images and details of refreshed new GWM Tank 400 off-roader emerge online in China.

24-09-2025
International
Ninth-Gen Nissan Sentra Bows In — Bolder Look, New Tech, Same Platform

Ninth-Gen Nissan Sentra Bows In — Bolder Look, New Tech, Same Platform

The all-new, ninth-gen Nissan Sentra makes its global debut in the US, featuring sharper looks and more tech.

24-09-2025
International
Tom Matano, Mazda MX-5 Designer & ‘Father’, Dies At 77

Tom Matano, Mazda MX-5 Designer & ‘Father’, Dies At 77

Legendary designer and ‘father’ of the Mazda MX-5 Tom Matano has died at the age of 77.

23-09-2025
International
Suzuki Has Updated Its Logo for the First Time in 22 Years

Suzuki Has Updated Its Logo for the First Time in 22 Years

Japanese automaker Suzuki has updated its logo for the first time in 22 years, featuring a cleaner, bolder design.

23-09-2025
International
Fifth-Gen Geely Emgrand Official Images Unveiled in China

Fifth-Gen Geely Emgrand Official Images Unveiled in China

The first official images of the new, fifth-gen Geely Emgrand saloon have surfaced in China. Future Proton S70 donor?

22-09-2025
International
Next-Gen BMW iX5 Hydrogen Unveiled Ahead of 2028 Debut

Next-Gen BMW iX5 Hydrogen Unveiled Ahead of 2028 Debut

BMW has confirmed that the production version of the new BMW iX5 Hydrogen is set to debut later in 2028.

22-09-2025
International
Chery Fulwin X3L Debuts As iCaur 03’s Beefed-Up, Extended-Range Sibling

Chery Fulwin X3L Debuts As iCaur 03’s Beefed-Up, Extended-Range Sibling

New Chery Fulwin X3L takes the boxy charm of the iCaur 03 and reimagines it as a rugged, extended-range SUV built for adventure.