The High Stakes of the EU’s Tariff Decision on Chinese Electric Cars: Will They Be Enough?

The European Union is considering imposing tariffs on cheap Chinese electric cars, but researchers believe that the proposed tariffs may not be high enough. According to experts, tariffs of 50 percent are necessary to prevent a flood of Chinese electric cars in Europe.

However, recent studies suggest that even higher tariffs may not be enough to deter Chinese manufacturers from entering the European market. For instance, the Rhodium Group estimates that with tariffs set at the high end of the scale, Chinese manufacturers would still be able to make profits.

One example given is the BYD Seal U SUV, which is sold for half the price in China compared to the EU. Import and customs costs add around 13,000 euros to the price in the EU. Despite this, Chinese production costs remain low due to large car factories, which allows them to price cars competitively in the European market.

Chinese companies are already gaining market share in Europe, with projections showing that they could capture 20 percent of the Union market by 2027. This trend is expected to continue as more Chinese brands enter