European car makers that build EVs in China and import them back to the continent will be hit with 21% additional duty taxes by the EU.
Announced yesterday by the European Commission, these new tariffs, which could go as high as 38.1% for some Chinese car makers, are aimed at levelling Europe’s automotive playing field.
The new taxes are on top of the existing 10% import tariff.
As well as penalising Chinese manufacturers that are undercutting local rivals with the help of government subsidies, the European Commission is also hitting firms – such as Mercedes-Benz, BMW and Renault – that have moved some production from Europe to China, where labour rates are cheaper.