Trade War: EU Proposes Tariffs on Chinese EVs Amid Subsidy Dispute \ stacker news ~econ

Trade War: EU Proposes Tariffs on Chinese EVs Amid Subsidy Dispute

640 sats \ 25 comments \ @TomK 12 Jun econ

The European Commission is considering imposing import tariffs on Chinese electric vehicles (EVs), citing preliminary findings that Chinese state subsidies are putting EU EV manufacturers at an unfair disadvantage (the EU would never subsidize own sectors). The Commission has reached out to Chinese authorities to discuss these findings and seek WTO-compliant solutions.

If talks with China do not yield effective resolutions, provisional countervailing duties will be implemented from July 4, secured through deposits determined by customs in each EU member state. These duties will only be enforced if final tariffs are approved.

Chinese battery electric vehicle manufacturers cooperating with the investigation will face an additional 21% duty. Specific tariffs for BYD, Geely, and SAIC are set at 17.4%, 20%, and 38.1%, respectively.

European automakers such as BMW, Mercedes-Benz, and Volkswagen are experiencing price and market share pressures in China from local manufacturers like BYD and Geely, who also have expansion plans in Europe.

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164 sats \ 1 reply \ @SwearyDoctor 12 Jun

this is how you know the "transition away from fossil fuels to save the climate" was always just a money grab to invent a new consumer good everyone had to buy. When that consumer good no longer comes from imperial core protected corporations.. fuck the plan.

21 sats \ 0 replies \ @Undisciplined 12 Jun

Exactly

160 sats \ 1 reply \ @0xIlmari 12 Jun

God forbid EU citizens would actually get affordable EVs. Would someone please think of the poor German automaker CEOs?

0 sats \ 0 replies \ @Bell_curve 12 Jun

Exactly

136 sats \ 2 replies \ @0xbitcoiner 12 Jun

BYD has hinted at the possibility of establishing a manufacturing facility in Romania.

edit: It was expected that Europe would follow the US's lead

Biden Set To Levy 100% Tariffs On Chinese EVs This Week #538201

63 sats \ 1 reply \ @riberet19 12 Jun

100%? The US doesn't mess around.

0 sats \ 0 replies \ @TNStacker 12 Jun

yup

126 sats \ 5 replies \ @Undisciplined 12 Jun

Don't EU EV manufacturers also get unfair state subsidies? Maybe they're actually just worse at it and they're losing fair and square.

63 sats \ 4 replies \ @TomK OP 12 Jun

Of course the are pumping them full of subsidies. For example: they are freed of taxation

126 sats \ 3 replies \ @Undisciplined 12 Jun

I know it's economically similar, but I can't bring myself to call tax breaks a "subsidy".

90 sats \ 1 reply \ @0xbitcoiner 12 Jun

I stumbled upon this article that provides a comprehensive overview of the various subsidies available in different countries.

The future is electric, but only if we make it so. That’s why governments across Europe offer tax benefits and purchase initiatives to incentivize the adoption of BEVs. Measures vary per country, but this overview of eight major European fleet markets also shows some common trends: reducing the initial cost of EVs, developing charging infrastructure, and – last but certainly not least – helping corporates make the transition. (For an overview of incentives in eight minor European fleet markets, click here).

Germany

Road tax: BEVs are exempt for a maximum of 10 years. Exemption ends at end of 2030. Valid for all vehicles registered before end of 2025. Company car tax: reduction by up to half of the taxable amount of (1% of the car’s list price) for private use of BEVs and PHEVs, and additional reduction of the taxable amount for BEVs up to €60,000. Buying incentives: Having phased out its corporate incentives in September 2023, the German government in December abruptly cancelled its EV buying incentives for private consumers as well.

https://www.fleeteurope.com/en/new-energies/europe/features/ev-incentives-2024-europes-major-fleet-markets

58 sats \ 0 replies \ @Undisciplined 12 Jun

Thanks.

There's also the punitive taxes on EV's primary substitute.

84 sats \ 0 replies \ @TomK OP 12 Jun

I know what You mean. In addition to this relative tax relief, let's call it that, manufacturers and consumers receive subsidies at a wide variety of levels, starting with certificate trading and exemptions for CO2 consumption, and ending with direct subsidies, so-called short-time working allowances and other regulations to help the industry again and again.

96 sats \ 6 replies \ @OT 12 Jun

Some of these Chinese electric cars are cheap AF. I see these tiny ones which would be less than 5k EUR!

My concerns are about the data, connectivity to the internet and mostly the quality of the car. Like how long is it going to last?

It makes sense that the EU would want to try and protect their car industry.

42 sats \ 0 replies \ @gmd 12 Jun

I ordered from Temu once and quickly realized why the prices were so cheap...

unless EVs are magically easier to produce in higher qualilty... would not trust the first 5 or so generations of these cars

42 sats \ 4 replies \ @Bell_curve 12 Jun

Why not protect car industry with subsidies instead of tariffs on Chinese cars?

21 sats \ 3 replies \ @TomK OP 12 Jun

What about open markets. Let the commies weaken their companies with subsidies. Innivation and wealth are the heirs of the cold storm of pressure and competition

42 sats \ 1 reply \ @Bell_curve 12 Jun

I agree.

I was playing devils advocate regarding two terrible policies

0 sats \ 0 replies \ @TomK OP 12 Jun

Lol. You were pushing me toward the first cup of wine...

21 sats \ 0 replies \ @OT 12 Jun

That’s it. The people that value quality will pay for it until the quality of cheaper cars gets better over time. A win for consumers, and only the best or most efficient of the old guard surviving.

96 sats \ 1 reply \ @BlokchainB 12 Jun

BYD are selling EVs as cheap as $10k I read yesterday. The Biden administration is trying to do the same in the USA. Stop super cheap EVs from flooding the market

Like what did the western world think was going to happen? Of course China was going to do this. They have the energy (coal fire plants) and the dirt cheap labor to outcompete everyone in the market.

42 sats \ 0 replies \ @Bell_curve 12 Jun

Must prohibit cheaper EV

75 sats \ 0 replies \ @TNStacker 12 Jun

US is going with 100% tariff on Chinese EVs. The competition is real!

42 sats \ 0 replies \ @wingalt 13 Jun

It doesn't take long to see how politicians are full of it. 100% tariff means that Biden's economy is half as productive as the Chinese, how dare you selling affordable cars, you evil Chinese communists!

99 sats \ 0 replies \ @Satosora 12 Jun

Electric doesnt mean it is necessarily cleaner. Especially the chinese companies, they dont care about the environment.