The European Union (EU) is preparing to reduce additional customs duties planned to be applied to electric vehicles imported from China. With this regulation, which will also affect major car manufacturers such as Tesla , the additional tax determined as 9% for electric vehicles coming from China will be reduced to below 8% . However, this tax will come into force on top of the 10% taxes currently applied to vehicles imported from China .

EU set to cut tariffs on Chinese electric vehicles

The new tax rate is scheduled to come into effect in November 2024 , and EU member states will hold the final vote to approve it. The European Commission had brought up the additional tax on the grounds that vehicles coming from China were increasing unfair competition in the European market. The aim was to protect EU domestic manufacturers with this tax on Chinese manufacturers.

However, these high taxes were rightly criticized harshly by China. The Chinese Ministry of Commerce criticized the process carried out by the European Commission, stating that China’s views were not sufficiently taken into account and that the decision was wrong.

It was also emphasized that different practices among Chinese companies distorted the research results. China argued that the EU should review this decision and stated that the two sides should resolve this dispute through dialogue.

Since June 2024, many technical talks on trade have been held between China and the EU. The Chinese side stated that they want to continue solution-oriented negotiations and that it would be wrong for the EU to take steps that would increase trade tensions.

Chinese authorities have stated that they will take all necessary precautions and implement all kinds of measures to protect the interests of Chinese companies. In fact, it is being said that this tax confusion will be a move that could change the balances in the global electric vehicle market.