Import taxes from China will have to go up by 55% for the European Union to stop EVs from coming in. China’s electric cars have been getting more and more attention from the European Union, which wants to stop these cars from coming into their country.
At first, the EU planned to raise taxes by 15% to 30%, but Rhodium Group said that these amounts probably wouldn’t make a difference.
Rhodium Group’s study said, “Even if the duties come in at the higher end of this range, some China-based producers will still be able to make comfortable profit margins on the cars they export to Europe because they enjoy substantial cost advantages.”
One of Tesla’s competitors is BYD, a Chinese brand of electric cars that did better than Tesla and can be sold for a lot more money.
The study also said that China will still make more money in the EU than in its own country, even with a 30% tariff. It said China would probably have to lower its prices to sell more in the EU.
The report said, “Much steeper duties of around 45%, or even 55% for fiercely competitive producers like BYD, would probably be necessary to make exports to the European market unappealing from a business point of view.”
The European Commission looked into Chinese RVs because officials said they could be a threat to EU makers. The US has also put high taxes on China’s electric vehicles, which makes the need to enter the EU market even stronger.
When asked about the investigation, China said it was “blatant protectionism” and that its businesses are “simply more competitive” than those in the West.
