{"id":25082,"date":"2024-06-11T10:10:05","date_gmt":"2024-06-11T10:10:05","guid":{"rendered":"http:\/\/107427000"},"modified":"2024-06-11T10:10:05","modified_gmt":"2024-06-11T10:10:05","slug":"eu-is-expected-to-unveil-tariff-plans-for-chinese-evs-this-week","status":"publish","type":"post","link":"https:\/\/wp.worldtechguide.net\/eu-is-expected-to-unveil-tariff-plans-for-chinese-evs-this-week\/","title":{"rendered":"EU is expected to unveil tariff plans for Chinese EVs this week"},"content":{"rendered":"

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TOPSHOT – People look at a BYD Seagull car by Chinese electric vehicle (EV) manufacturer BYD Auto at the Bangkok International Motor Show in Nonthaburi on March 27, 2024. (Photo by Lillian SUWANRUMPHA \/ AFP) (Photo by LILLIAN SUWANRUMPHA\/AFP via Getty Images)<\/p>\n

Lillian Suwanrumpha | Afp | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The European Union is expected to reveal its tariff rate plan for Chinese electric vehicles this week, as the bloc cracks down on low-priced, subsidized imports.<\/p>\n

The EU has a standard 10% duty on imported EVs<\/span>, but is set to provisionally raise those fees for Chinese EVs starting July 4.<\/p>\n

Citi analysts on Monday said the tariff rate could be “hiked to ~25-30% from 10% currently, while our risk scenario (40% probability) envisages a hike in the tariff rate to 30-50%.”<\/p>\n

Anthony Sassine, senior investment strategist at KraneShares, on Tuesday said he expects the tariff rates to be “between 10% and 20%” but “could see this being on the higher end of the 20%” after the European Parliament elections<\/span> last week.<\/p>\n

Ursula von der Leyen, president of the European Commission, saw her party \u2013 the European People’s Party \u2013 gaining seats<\/span> on Sunday. Von der Leyen has pushed for a “de-risking” approach from Beijing<\/span>.<\/p>\n<\/div>\n

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The European Commission first launched an investigation<\/span> in October into subsidies given to EV makers in China. The EU alleged such subsidized imports “posed an economic threat to the EU’s EV industry.”<\/p>\n

“But the Chinese manufacturers are so efficient, are so ahead of the curve, that tariffs like this \u2013 I don’t think will impact too much the pricing here. They will still be more competitive than their EU counterparts,” Sassine told CNBC’s “Squawk Box Asia” on Tuesday.<\/p>\n

China’s EV industry has boomed thanks to incentives and support from the Chinese government, raising overcapacity concerns from authorities in the U.S. and Europe.<\/p>\n

U.S. Energy Secretary Jennifer Granholm in March warned China could flood the U.S. electric-vehicle market<\/span> with its offerings, after President Joe Biden raised similar concerns. The U.S. already announced stiff new tariffs<\/span> in May. The Biden administration hiked tariffs on Chinese EV imports to 100%, up from 25%.<\/p>\n<\/div>\n

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Turkey reportedly<\/span> announced on June 8 that it will impose an additional 40% tariff on imports of vehicles from China.<\/p>\n<\/div>\n

Expanding in Europe<\/h2>\n
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Last month, Chinese EV makers including Xpeng and BYD showcased their models<\/span> in Europe while Nio opened a new showroom in Amsterdam, despite the ongoing EU probe.<\/p>\n

BYD announced in December that it will build a new factory in Hungary<\/span> while Chery in April entered a joint venture<\/span> with Spain’s Ebro-EV Motors to develop new EVs.<\/p>\n

Cedomir Nestorovic, professor of geopolitics at ESSEC Business School, said “scores of Chinese manufacturers are now scouting the EU.”<\/p>\n

They “will avoid, or they will try to avoid, all kinds of tariffs,” Nestorovic told CNBC’s “Street Signs Asia” on Monday.<\/p>\n<\/div>\n

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“We’re seeing the Chinese automakers actually setting up factories in Europe. Nio, also, is looking at Hungary<\/span>. So there are options here, and I’m sure there’s back channels happening here,” said KraneShares’ Sassine.<\/p>\n

“I think with Europe, it’s not going to be a big deal. In the U.S., it’s a different story,” said Sassine.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

TOPSHOT – People look at a BYD Seagull car by Chinese electric vehicle (EV) manufacturer BYD Auto at the Bangkok International Motor Show in Nonthaburi on March 27, 2024. (Photo by Lillian SUWANRUMPHA \/ AFP) (Photo by LILLIAN SUWANRUMPHA\/AFP via Getty Images) Lillian Suwanrumpha | Afp | Getty Images The European Union is expected to …<\/p>\n","protected":false},"author":1,"featured_media":25083,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"hashtags":[],"class_list":["post-25082","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/25082"}],"collection":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/comments?post=25082"}],"version-history":[{"count":0,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/25082\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media\/25083"}],"wp:attachment":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media?parent=25082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/categories?post=25082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/tags?post=25082"},{"taxonomy":"hashtags","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/hashtags?post=25082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}