Leading European carmaker Volkswagen has said it “rejects” the additional customs duties on imports of Chinese electric vehicles imposed by the EU on Thursday, July 4, which the German group considers “harmful.”
“The negative effects of this decision outweigh the potential benefits for the European automotive industry and in particular for Germany,” the group said, while German carmakers, which export their models to China, fear retaliation from Beijing.
Up to 38% additional customs duties
Brussels announced on Thursday the introduction of additional customs duties on imports of Chinese electric vehicles as a precautionary measure, in response to the subsidies granted by Beijing to their manufacturers. These surcharges, called “countervailing duties”, are 17.4% for the Chinese manufacturer BYD, 19.9% for Geely and 37.6% for SAIC, with different amounts depending on the level of public subsidies received.
Other manufacturers will be subject to an average additional duty of 21% if they cooperated with the EU investigation or 37.6% otherwise.
Germany, which is heavily involved in China, had fought with Sweden and Hungary to avoid sanctions over the issue, fearing retaliation, echoing concerns from German carmakers Audi, BMW, Mercedes and Volkswagen, which make around 40% of their global sales in China. France and Spain, by contrast, pushed for proportionate measures.
Source: BFM TV
