From 17.4 to 38.1 percent. That's the extent of the EU's new punitive tariffs on Chinese cars. Worst of all, it affects SAIC, which i.a. builds MG.
For years, the Chinese electric car brands have received illegal state subsidies from the communist dictatorship.
A state subsidy that has kept the prices of the cars artificially low and is therefore illegal. At least in the eyes of the EU system.
Now we are on the other side of the parliamentary election, and then the EU feels that it can afford to hit back with punitive tariffs. It's not as strict as the Americans' 100 percent. But some car brands will certainly be able to feel the increased duty.
The EU juggles with the customs states, which are based on how much the individual Chinese brands have something to do with Europe in terms of production.
The EU states this in a press release .
It is these three car groups that are currently being hit by the customs authorities:
- OFFER: 17.4 per cent.
- Geely: Volvo, Polestar, Zeekr and others: 20 per cent.
- SAIC: MG, Maxus and others: 38.1 per cent.
In addition, all Chinese brands that have not cooperated with the EU system will be charged the absolute highest rate. So 38.1 percent.
The new tariffs are to be added on top of the 10 percent that the Chinese car brands already have to hand over to sell cars on the European market.
But there is nothing to suggest that the EU will also punish the car brands retroactively. Something that has otherwise been rumored several times.
The Chinese have expressed their anger several times over the announced punitive tariffs, which are now a reality. As recently as earlier this week, however, it emerged that Volvo is 'fleeing' back to Europe precisely because of the fear of punitive tariffs. Read more about it here .