Tuesday, February 11, 2025

EU postpones decision on punitive tariffs on Chinese cars

There will be no retroactive punitive tariffs on Chinese cars. At least not for after the EU elections in June.

It has become a crazy hot topic in the European car industry. And even outside of it. Because should, or should not, a punitive tariff be placed on Chinese cars.

The EU Parliament has proposed to do so with retroactive effect. But it has, among other things, met resistance from several European car brands, who fear being met with a counter-response in the Chinese market.

And now the EU has completely postponed a decision on punitive tariffs until after the elections to the European Parliament, which take place on 9 June.

Reuters writes that.

READ ALSO: Polestar dumps another test – worst of all

According to the media's information, the EU Commission would very much like to avoid the issue of punitive tariffs on Chinese cars becoming an issue in the election campaign. That's why we won't see it in the fort either. At least not for the election.

Despite the postponement, a spokesperson for the EU Commission will not confirm to Reuters when, if at all, they intend to raise the issue again.

The tariffs may affect car brands such as Tesla, Volvo, Polestar, BMW, BYD and Mercedes, all of which have either factories in China or very large interests in the Chinese market.

The background for the announced punitive tariff must be found in the EU's presumption that the Chinese dictatorship, through state subsidies, illegally helps the country's car brands to keep prices down in Europe.

A German investigation has proven, for example, that BYD alone has received several billion kroner in state subsidies from the communist regime. But where the EU hesitates, the US has already taken seriously a threat of 100 percent tariffs on Chinese cars. Read more about it here .

Read more exciting news from and about the world of cars right here!

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