The EU is now penalizing Chinese electric car manufacturers with punitive tariffs. Among those most affected are giants BYD and Volvo owner Geely.
The threat has been looming for some time. Now it is clear that the EU is introducing previously communicated tariffs.
According to the decision, Chinese BYD, which has grown enormously in recent years, will receive additional tariffs of 17.4 percent. Volvo Cars owner Geely will receive additional fees of 19.9 percent and state-owned SAIC 37.6 percent. These are in line with what was previously communicated.
But it's not just the biggest players on the Chinese electric car market that are affected.
Other manufacturers will also be burdened with additional tariffs on top of the existing tariffs. These will be 20.8 and 37.6 percent, respectively, depending on whether they cooperated with the EU's investigators or not.
Initially, the tariffs will be applied for a four-month period, but if they are made permanent, it could be for up to five years.
The background to the trade dispute is that the EU believes Chinese electric car manufacturers are benefiting from unfair subsidies, which in turn affect European car manufacturers. From a European perspective, primarily from German car manufacturers, there have been calls to find a quick solution to the conflict, fearing countermeasures from China.
