The European Union startles China as Europe imposes higher tariffs soaring the percentage to 45% on electric vehicles, that are manufactured and delivered to Europe from China. This decision has increased the trade tensions between the countries, that share the title of being the world’s leading export powers since the remaining world looks up to their decisions.
On Tuesday evening, the rule of the new excise duty stole the limelight as it was published in the official journal of the European Union. The announcement took China by surprise as they spent months discussing with Europe, that they could retaliate. And make it a tough situation for the European Union to come out of it, which can even impact the auto-industry pleas if they want to avoid the surging rates.
Are Europe’s EV Tariffs A Setback For Chinese Producers?
As Europe imposes higher tariffs on electrical vehicles, it has proven as a setback for Chinese manufacturers. Why? Because they feel like they have been blocked out from capturing the automobile industry in the European Union, where they saw immense potential to introduce their EV. Was this the first attempt of The European Union to boost the taxes? No, it was not as last year, the duty exceeded more than 100%. The reason was that year government subsidies and exports surged to an extensive level of 70%.
Does Europe Imposes Higher Tariffs On and Off?
No, instead the European Union’s taxation decision varies depending on what the manufacturer offers them and as a result will range from 8% to just over 35%. Not to forget that the existing rate will also be charged in the bill that is of 10%.
